@MonikaK1
1. OP is reporting a bug in TT. I see the same bug. I have Home & Business, Desktop, Windows, for 2022, married filing jointly.
Under Personal > Federal Review:
> "We found a way you can plan for retirement and get a tax break" > click Continue
> "Here's how a traditional IRA could get you a tax break" > click Continue
> "Let's see how big your tax break can be"
My spouse had < $7,000 in earned income ("taxable compensation") in 2022. However, I was able to enter $7,000 for my spouse (over 50); then clicked the Calculate button. The calculator claimed that the full $7,000 was deductible and would save us $thousands in taxes.
I believe that's incorrect.
https://www.irs.gov/retirement-plans/traditional-and-roth-iras :
"The most you can contribute to all of your traditional and Roth IRAs is the smaller of: [...]
For 2022, $6,000, or $7,000 if you’re age 50 or older by the end of the year; or your taxable compensation for the year.
IRS Publications 590a 2022: What is compensation? :
"Wages, salaries, etc.
Wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services are compensation."
2. TT can help you estimate income tax for the next year (2023) in the program. Go to Personal > Other Tax Situations > Other Tax Forms > "Form W-4 and estimated taxes". It asks you to estimate your income & expenses, then estimates your tax bill.
