Traditional IRA contribution not changing my refund amount

Forum|Forum|2 years ago
February 10, 2024
3 replies
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Thank you for your help in advance 🙂

So turbotax is telling me that I can get an additional $600 on my refund if I put $3000 in my traditional IRA. I thought that this would be great and told the program that I would. I'm assuming it has to be the traditional and not my Roth.

After entering info in turbotax I noticed that my refund did not increase by $600. Anyone have an idea if that refund is reflected immediately in turbotax? I'm also wondering how they verify my deposit? Just a bit confused about this. Thank you!

Best answer by AnnetteB6

Making a deductible contribution to your Traditional IRA should affect your refund amount because your taxable income will be reduced by $3000 if you qualify to deduct the contribution. Making a contribution to your Roth IRA would not have the same effect because those contributions are not deductible.

However, either type of contribution may qualify you to claim the Retirement Savings Contribution Credit, which would affect your bottom line refund amount.

Be sure to visit the Retirement Savings Contribution Credit section of your return after you have entered the IRA contribution.

When you file your tax return, you are stating to the IRS that you are making the IRA contribution by the due date of your tax return. After that due date, the financial institution that holds the IRA will issue a form to you and the IRS to indicate that a contribution was made. At that time, the IRS will match that information to your return and notify you if there is a discrepancy.

@tom m63

tom m63Author

I figured it out lol !

AnnetteB6Answer

However, either type of contribution may qualify you to claim the Retirement Savings Contribution Credit, which would affect your bottom line refund amount.

Be sure to visit the Retirement Savings Contribution Credit section of your return after you have entered the IRA contribution.

@tom m63

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KS004

Hey Tom,

what was the answer because I’m experiencing the same issue.

BillM223

On the screen after you make this entry, go look at your 1040 (see below) and see if the IRA contribution was placed on line 20 of Schedule 1 (1040) and flowed through to line 10 on the 1040.

To see your forms, in the desktop product, go into Forms mode (upper mode). In the Online product, look to the left while in your return, and click on Tax Tools. Then click on Tools underneath that. Then in the center, click on View Tax Summary. Then back on the left, click on View My 1040.

Note that you will be able to see your 1040, and Schedule 1, 2, and 3...all run together.

@KS004

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