Turbotax Premier 2022 indicates that I owe Federal taxes ($2,950). It indicates that if I make a contribution to a traditional IRA, up to my limit ($7,000 for being 63 years, married, single income), then I can reduce my taxes. It also says that I can do so up until 4/18/2023. So, I contributed to a traditional IRA the $7,000, entered in Turbotax, and reduces the taxes due to $1,356. Nice. But when I answer the question about:
"Tell us how much of the above total contribution for 2022 you contributed between January 1,2023 and April 18,2023", and I enter the $7,000, then it reverts back to a Tax due of $2,505. A reduction of only $445. Are these calculations correct? If so, why would anyone put $7,000 of hard cash into an IRA (that will immediately lose money due to market conditions) if it is only going to obtain a $445 reduction on the taxes due for 2022? And then it refers that I should have a Year-End summary from my IRA institution or a Form 5498, which most likely will not reflect this contribution. Am I missing something here?
