Can I reduce my tax owed by opening a IRA account?

Forum|Forum|1 year ago
April 4, 2025
1 reply
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I owe the goverment because of interest I earned on savings. Can Iopen a IRA b efore the 15th to reduce my debt?

AnnetteB6

If you are eligible to make a deductible contribution to a Traditional IRA, then the extra deduction would reduce your taxable income. However, your eligibility to make the deductible contribution depends on many factors.

One way to know whether you are eligible is to go through the screens in TurboTax to indicate that you do plan to make a contribution to a Traditional IRA and pay attention to the messaging on the screen as you do so. TurboTax will let you know if you can make the deductible contribution or not.

Go to Deductions and Credits > Retirement and Investments > Traditional and Roth IRA Contributions and click Start or Update to get started.

See the following TurboTax help article for more information:

Is an IRA contribution deductible?

Where do I enter my traditional or Roth IRA contributions?

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