IRA Deduction

Forum|Forum|3 years ago
April 9, 2023
2 replies
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Neither my wife nor I, are covered by a retirement plan at work. Why won't Turbotax allow us to deduct an IRA contribution, when it has in past years? I am receiving a pension from a former employer but that shouldn't matter, especially for my wife. Any help is appreciated.

TurboTax Home & Biz Windows

Best answer by AnnetteB6

It is difficult to say what is preventing you from being able to deduct a Traditional IRA contribution if your tax situation is similar to what it was in past years. No one here is able to see your return to give you that specific advice.

Take a look at the following TurboTax help article to learn more and see if any of these situations fit what you are seeing on your return:

How much of my Traditional IRA contribution is deductible in 2022?

AnnetteB6Answer

Take a look at the following TurboTax help article to learn more and see if any of these situations fit what you are seeing on your return:

How much of my Traditional IRA contribution is deductible in 2022?

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tbert56783Author

Based on the article you referenced and the IRS guidance our deductions should be fully deductible. The interesting thing is that I just did my son's taxes, who works part time at a convenience store, and Turbotax says his contributions aren't deductible either. Seems like a Turbotax problem. I'll have to contact them. Thanks for your help.

AnnetteB6

If you would be willing to provide a diagnostic copy of your tax file, we can take a closer look and try to explain what is causing the contribution to not be deductible. The diagnostic file will not contain personally identifiable information, only numbers related to your tax forms. If you would like to provide us with the diagnostic file, follow the instructions below and post the token number along with which version of TurboTax you are using in a follow-up thread.

Use these steps if you are using TurboTax Online:

Sign in to your account and be sure you are in your tax return.
Select Tax Tools in the menu to the left.
Select Tools.
Select Share my file with agent.
A pop-up message will appear, select OK to send the sanitized diagnostic copy to us.
Post the token number here.

If you are using a CD/downloaded version of TurboTax, use these steps:

Select Online at the top of the screen.
Select Send Tax File to Agent.
Click OK.
Post the token number here.

@tbert56783

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AthensK

I am having the same issue. I am retired and receiving a pension. I am working full time at a new job and I am not covered by a pension plan with the new employer. TurboTax will not allow the IRA deduction even though our combined income is well below the threshold. As a result, TurboTax is indicating that I owe a sizeable amount to the IRS rather than receiving a refund.

Per the TurboTax software: Limitations of the IRA deduction

- You can deduct all of your contribution if you (and your spouse, if filing a joint return) are not covered by a retirement plan at work.

This appears to be a bug in the software programming logic. Is there a fix for this being generated?

DJ-Poceus

Another related issue, and wondering if Turbo Tax Tax Expert software personnel have read the 2023 IRS Publication 590a, changes as copied from IRS website "What's new for 2023."

Modified AGI limit for certain married individuals increased.

If you are married and your spouce is covered by a retirement plan at work and you aren't, and you live with your spouse or file a joint return, your deduction is phosed out if your modified AGI is more than $218,ooo (up form $204,000 for 2022) but less than $228,000 (up from $214,000 for 2022).

Turbo Tax Online seems to ignore this IRS provision for "certain married individuals."