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G
guytax
April 8, 2025
Question

I'm single. My MAGI is $1M+. TT says my $8k contribution to Traditional IRA is deductible. That cannot be true, can it?

  • April 8, 2025
  • 1 reply
  • 0 views

I have had 7 Tax experts tell me that my situation is a system glitch.  

But that does not help me.

What do I do to get it fixed?

 

    1 reply

    SusanY1
    SusanY1
    April 9, 2025

    It is deductible if you aren't covered by a retirement plan at work.  IRA Contribution and Deduction Limits.

    If you are covered by a retirement plan at work, be sure to indicate this in the IRA contribution section of TurboTax or by checking the box "retirement plan" under neat the area for Box 13.
     

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      G
      guytaxAuthor
      April 9, 2025

      OMG!

       

      Are you serious?

      And I could not get that answer sooner!

      Well thank you from the bottom of my heart.  And check book.

      That turns into a nice little $3k credit if I choose deductible.

      Or is there an upside to leaving it non-deductible in this situation?

       

      KrisD15
      KrisD15
      April 9, 2025

      It's up to you, pay the tax now or pay the tax later.

      If you think your tax rate will go down, you'd most likely rather pay the tax on it later. 

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