"Stated intention" to make a deductible IRA contribution??? | Ed Slott and Company, LLC

"Stated intention" to make a deductible IRA contribution???

Had a weird question come across my desk.

Client already filed their 2019 tax return. Advisor tells me "in filing, the client stated their intention to make a 2019 contribution". I honestly have no idea what that means. Stated their intention to the CPA? To the IRS?

I'm thinking it should not be an issue to make the contribution today (i.e., before July 15th), and then amend the already-filed 2019 return with a 1040X.

But this "client stated their intention to make a 2019 contribution" comment - is there any situation whereby you would need to state to the IRS on your filing that you intend to make a deductible IRA contribution after you've filed your return?

Wondering if I am missing something esoteric.

Thank you!

A preparer might use this statement when a deduction is being claimed for a contribution not yet made when the return is filed. It has no meaning other than to justify why a deduction was claimed in the event that the contribution is never made. The return and the contribution must be consistent, so either the taxpayer must make the contribution by 7/15, or have the return amended to delete the deduction.

Thanks, Alan.

The CPA was essentially asking if they should include a traditional IRA contribution on your tax return under the assumption that you will make this contribution by the filing deadline, even though the tax return might be filed before the contribution is actually made.  As Alan indicated, the reporting on your filed tax return must be in agreement with what you end up doing, otherwise you must amend.

 

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