Question

Hi All, I've contributed $6000 to roth Ira for 2020, and when i enter it, looks like my tax increased, i thought i can do $6000 with being tax. please help

Forum|Forum|5 years ago
May 14, 2021
2 replies
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TurboTax Self Employed Online

If your taxes increased when you entered a $6000 Roth IRA contribution, then you probably have an excess contribution. This means that your income is probably limiting the amount that you are allowed to contribute to the Roth IRA. If you have contributed too much, then you will be paying a 6% excise tax for each year the excess amount remains in the IRA.

As you go through the screens in TurboTax to enter the contribution amount, read each screen carefully especially toward the end. The program will let you know if you are in an excess contribution situation and what you need to do to fix it.

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S

SweetieJean

Employee

A Roth is not deductible. Did you have at least $6000 in earned income, or self-employment profit? Conversely, for 2020, your Roth IRA contribution limit is reduced (phased out) in the following situations:

Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $196,000. You can’t make a Roth IRA contribution if your modified AGI is $206,000 or more.
Your filing status is single, head of household, or married filing separately and you didn’t live with your spouse at any time in 2020 and your modified AGI is at least $124,000. You can’t make a Roth IRA contribution if your modified AGI is $139,000 or more.
Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than zero. You can’t make a Roth IRA contribution if your modified AGI is $10,000 or more.