Question

IRS shows that military pension is excluded from MAGI for IRA limits. How to I get TurboTax to reflect this?

Forum|Forum|7 years ago
June 6, 2019
11 replies
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TurboTax Deluxe Online

MichaelL1

Employee

can you add a comment where you see that the pension income is excluded from MAGI so I can do some research on this.

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haysejAuthor

Is "military pension" not considered "pension?" 590-A indicates that compensation for purposes of an IRA does not include income from pensions.

DoninGA

Employee

The Modified AGI worksheet in IRS Publication 590-A does not reference anything concerning military pensions as being excluded from the MAGI calculation for an IRA - <a rel="nofollow" target="_blank" href="https://www.irs.gov/publications/p590a#en_US_2016_publink100025076">https://www.irs.gov/publications/p590a#en_US_2016_publink100025076</a>

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haysejAuthor

590-A Table 1-1 shows that compensation for purposes of an IRA excludes pensions

DoninGA

Employee

The worksheet for MAGI does not indicate pensions at all.

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levisncap89

Employee

Understood. He's misreading table 1.1

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haysejAuthor

I don't understand. Does table 1.1 not indicate that pension is excluded from AGI for IRA purposes?

MichaelL1

Employee

Table 1 shows it is not compensation, so it not considered earned income in taking an IRA deduction. It is not referring to the MAGI limits in table 1.

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haysejAuthor

OK thanks, so for the purposes of determining how much of my contribution is deductible I must include my military pension income?

MichaelL1

Employee

yes, it will be part of the MAGI computation. I am putting as answer below so we can close this question out as answered.