IRA 60 day rule

[Barbara E]

Taxpayer is MFJ, high income, withdrew $9497 from his IRA, repaid $9527. Question is, do I report the repayment as an IRA contribution just I would a normal contribution? Is he still allowed only the $5500 deduction?
Wife does not work

[Burke]

Taxpayer is MFJ, high income, withdrew $9497 from his IRA, repaid $9527. Question is, do I report the repayment as an IRA contribution just I would a normal contribution? Is he still allowed only the $5500 deduction?
Wife does not work

Not enough information. What is "high income?" Do you mean he withdrew $9,497 and paid back same amount + $30 within 60-day period? It can be a rollover, but $30 needs to be removed. The $30 would be a normal distribution this year. Does he have earnings? Is he covered by a pension plan at work? Enough earnings to cover wife? She could do a spousal IRA. What is his age?

[Barbara E]

IRA Question

Sorry, I was trying to be brief. Earnings are $94,748 from a K1, not covered by a pension plan at work he is 43 yrs old . He borrowed $9497,paid back the same amount, the other $30 is a service fee. Wife contributes $5500 to a spousal IRA .

[Burke]

Is the K-1 income considered earnings subject to SE tax? Neither he NOR she can contribute to an IRA unless there is earned income (subject to SE tax) on the tax return at least as much as the amounts being contributed. Since you are quoting $5,500 figures I am assuming both are under age 50?

[Barbara E]

Sorry, I was trying to be brief. Earnings are $94,748 from a K1, not covered by a pension plan at work he is 43 yrs old . He borrowed $9497,paid back the same amount, the other $30 is a service fee. Wife contributes $5500 to a spousal IRA .

The K 1 income is considered self employment income, he does pay Social Security tax on it and they are both under 50

[taxmom34]

you don't mention how many days there were before he repaid (or rolled over). was it 60 days? if yes its a rollover.

[Barbara E]

IRA 60 day rule

yes, it was within the 60 days. Thank you so much, it is nice to have someone to discuss a question with

[Burke]

Question is, do I report the repayment as an IRA contribution just I would a normal contribution? Is he still allowed only the $5500 deduction?
Wife does not work

This was your original question. It is not a normal contribution. It is reported as a rollover. He can't rollover more than he took out, no matter what it was for. So you have a $9,497 distribution and non-taxable rollover for the same amount. He is allowed a $5,500 contribution for her. So if you count the $30 extra he put back in the IRA, then he needs to contribute $5,470 to fully fund this year for himself. Then they will have an $11,000 IRA deduction on the tax return.