Question

Lansing City Tax IRA deduction reduced by entry in Line 6 Not Right

Forum|Forum|3 years ago
February 23, 2023
1 reply
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My wife works in Lansing and we live outside of the city. She has to pay 1/2 percent on her earnings. She made a $7,000 IRA contribution and the IRA deduction worksheet reduced it to $6,671 because of an entry in Line 6.

which says excess earned income in Column A which is my information. I don't know where TurboTax got the amount entered because I have No Earned Income. All my income is from SS and Pension. Even if I had Earned Income it shouldn't be there because we live outside Lansing so the only thing taxable is her Income from Lansing. It appears to me to be an error in the program. How do I fix it?

T

ThomasM125

It may be because your spouse has a retirement plan at work and you have modified adjusted gross income of over $109,000. In that case, your contribution limit starts to decrease up until income of $129,000 when the deduction is totally eliminated.

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