I must have made the wrong assumption about IRA deductions.
I contributed roughly $1800 to an employee 401k program at work but I also contributed the max $5500 to an IRA I have on the side. I see that the $5500 reduced my AGI but noticed that didn't impact EITC. I thought the EITC would be based on on my AGI.
During the tax return I was asked if I wanted to make the IRA contribution deductible or non-deductible. It seemed either way my refund wasn't going to increase and I chose deductible in case I apply for a program (like student loan forgiveness) that may base their assistance on my AGI.
Since the IRA contribution was post tax should I have put it as non deductible or does it matter?
Sorry if that sounds confusing but I was first mistaken on how it would affect my EITC then I was confused and unsure if I should choose deductible or non deductible for the IRA contribution. I guess I'm wondering if I had chosen non deductible would that have helped me in some way since I don't see any immediate benefit from chosen deductible.
