DavidS127
Expert Alumni

Deductions & credits

Your contribution to an IRA is deductible only to the extent you have taxable compensation.

 

Social security is not considered taxable compensation for purposes of an IRA deduction.  Long-term disability income that you receive prior to the minimum retirement age under your employer's plan and that is shown as taxable compensation in box 1 of Form W-2 is treated as earned income for purposes of contributing to an IRA.

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