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Roth Ira contributions for 2020

Forum|Forum|5 years ago
March 30, 2021
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So I'm kinda new to investing, I opened my first Roth IRA in June 2020. The confusion is that I filed my taxes early in March 2020. Then I found out after that the taxes and contribution due date were extended to July. So in June, I contributed $3,081 for 2019 but I already filed my taxes so I'm not sure if I'm supposed to include it on my 2020 return or if I messed up and have to amend my 2019 returns?

IRA

Best answer by macuser_22

Only Traditional IRA contributions are deductible - Roth is not.

A Roth IRA contribution does not actually go on a tax return, but you can enter it anyway to:

1) Tell you if your income qualifies you for a contribution and warn you if it does not.
2) Check if your income exceeds the limit to contribute to a Roth.
3) Track your contribution year-to-year if you use TurboTax every year.
4) Add the Retirement Savers Credit if you qualify.

macuser_22

Employee

Roth IRA contributions are not reported on a tax return.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

T

trepdogAuthor

Thanks that's what I thought when doing the research before getting a Roth but in the deduction's section it says below:

IRA contributions can lower your taxes if:

You make a deductible traditional IRA contribution. Ex: If you’re in the 22% tax bracket and contribute $1,000 to a traditional IRA, your taxes will be cut by up to $220, even if you don’t itemize.
You’re eligible for the Saver’s Credit. The tax benefits of this are even greater. Your $2,000 contribution to a Roth or traditional IRA will lower your tax bill by up to $1,000 each year.

macuser_22Answer

Employee

Only Traditional IRA contributions are deductible - Roth is not.

A Roth IRA contribution does not actually go on a tax return, but you can enter it anyway to:

1) Tell you if your income qualifies you for a contribution and warn you if it does not.
2) Check if your income exceeds the limit to contribute to a Roth.
3) Track your contribution year-to-year if you use TurboTax every year.
4) Add the Retirement Savers Credit if you qualify.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**