Skip to main content
February 19, 2025
Question

Why does TurboTax IRA calculator says my contribution is not deductible but that it will lower my taxes?

  • February 19, 2025
  • 1 reply
  • 0 views

The picture says it all

 

 

    1 reply

    February 21, 2025

    The IRA contribution is a tax deduction, it reduces your taxable income, but doesn't reduce your tax liability dollar for dollar.  

     

    You can’t take any deduction for IRA contributions if you have a retirement plan at work and your income is more than:

    • $87,000 if you're filing as Single
    • $143,000 if Married Filing Jointly

    Here's more info on Form 8606.