IRA Deductions is zero instead of $7000. I have no retirement plan. How can I fix it?

Forum|Forum|11 months ago
April 16, 2025
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TurboTax Free Edition Online

JamesG1

There are limitations on how much can be deducted based upon:

Your income (modified adjusted gross income),
Your filing status, and
Whether you are covered by a retirement plan (box 13 on your W-2).

The modified adjusted gross income tables are found on pages 13 and 14 of IRS Publication 590-A.

IRS Publication 590-A, page 9, states:

For 2024, the most that can be contributed to your traditional IRA is generally the smaller of the following amounts.

$7,000 ($8,000 if you are age 50 or older). or
Your taxable compensation for the year.

This is a complex area of the tax code. TurboTax will determine whether you qualify for a deductible contribution to a traditional IRA.

In TurboTax Premium Online, select Traditional and Roth IRA Contributions under Deductions & Credits.

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KhaledYousryAuthor

The issue is with the software. It considers me covered for a retirement plan while I am not covered. How can I fix that I am not covered by a retirement plan?

SusanY1

TurboTax picks up "covered by retirement plan" from the box on your W-2. Double-check that the W-2s for you (and your spouse, if applicable) do not have this box marked physically on the forms or in TurboTax entry screens. This is located at Box 13.

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