Can your IRA reduce taxable income?

[Brownshoes1992]

I have both Roth and Traditional IRAs. I was advised that I could make a contribution to my IRA by April 15 and it would reduce my taxable income. But when I filed 2024 using TurboTax, the system wouldn't alow it.

Is it true that contributions to an individual retirement account reduce the amount of taxable income? I was really counting on that, but ended up owing federal income tax.

  Thank you 

[AnnetteB6]

Yes, if you are eligible to make a deductible Traditional IRA contribution, then your taxable income can be reduced.  

However, there are income limits that are applied to determine whether you are eligible to deduct your Traditional IRA contributions.  See the following TurboTax help article to learn more:

Is an IRA contribution deductible?
 

Also, making a non-deductible Traditional IRA or Roth IRA contribution will not reduce your taxable income.