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February 17, 2021
Question

Where do I enter a tax deductible IRA?

  • February 17, 2021
  • 1 reply
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February 17, 2021

To enter your deductible IRA contribution:

  1. Select Federal on the left side menu.
  2. Select Deductions & Credits from the top menu.
  3. On the Let's find other tax breaks that might apply screen, scroll down to Did you contribute to traditional IRA or Roth IRA? Select, Yes I did and Continue.
  4. On the Your tax breaks screen, scroll down to Traditional and Roth IRA Contributions.
  5. Continue with the onscreen interview until complete.

 

 

Traditional IRA contributions are an above-the-line deduction and may directly reduce your reported wages, reducing your taxable income. For some incomes, this might allow you to qualify for other deductions and credits due to a lower adjusted gross income (AGI).

 

If you (or your spouse, if filing a joint tax return) are covered by an employer-sponsored retirement plan, there's a phase-out range.  Depending on your income, you may only deduct part or even none of the IRA contribution.

 

Roth IRA contributions aren't deductible.

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