AARP TaxAide Volunteers Question
This post ties closely to a recent post about deductible IRA conributions being rejected. Situation – MFJ filing status, TP over age 70.5 with pension and RMD income on 1099-Rs. Spouse age 66 with $18K W-2 income, 401k contribution, company retirement plan, and $6,000 contribution to traditional IRA. Spouse traditional IRA contribution reported under spouses name.
Return rejected with error code 448 basically saying because TP is over 70.5, deductible traditional IRA contribution not allowed. Taxpayer and spouse efiled their own 2007 return using TaxSlayer efile program using same scenario and return accepted.
Had same scenario at another AARP site next day and it too rejected. Sounds like a TaxWise program or IRS problem. Any comments?
Permalink Submitted by Anonymous (not verified) on Sat, 2009-02-21 01:58
Tom,
Does not appear that this should reject based on spouse age of 58. The 58 year old is a plan participant, and therefore the joint modified AGI may be too high for the deduction. Phaseout starts at 85,000 MAGI. But I do not understand why Taxwise mentions the age unless possibly the taxpayer info entry was incorrect, possibly transposed.
Permalink Submitted by Anonymous (not verified) on Sat, 2009-02-21 04:51
Could always switch the taxpayer and spouse, ie. list the spouse as taxpayer and see what that produces as a work around. TP will no longer be over 70. Lots of re entry though.
Permalink Submitted by Anonymous (not verified) on Sat, 2009-02-21 16:33
Beleive our workaround was to switch the birthdates of the taxpayer and the spouse and the efile was later ‘accepted’ by the IRS.