@bill57 wrote:
ok i do my taxes and them apply the ira amount to reduce the amount i owe. i owe becuase i claim 4 dependents thru the year and one at tax time, so i put in 7k to ira cont. box, hit done button and it comes up at a reduced contribution amount in the box showing the contribution amount
You say you have a 401(k) then the limit you see might be the deduction limit when covered by a retirement plan at work.
See this IRS link for Traditional IRA deduction limits when covered by a retirement plan at work.
https://www.irs.gov/Retirement-Plans/IRA-Deduction-Limits
If you're covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction.
|
If Your Filing Status Is...
|
And Your Modified AGI Is... |
Then You Can Take... |
single or
head of household |
$65,000 or less
|
a full deduction up to the amount of your contribution limit.
|
|
more than $65,000 but less than $75,000
|
a partial deduction.
|
|
$75,000 or more
|
no deduction.
|
| married filing jointly or qualifying widow(er) |
$104,000 or less
|
a full deduction up to the amount of your contribution limit.
|
|
more than $104,000 but less than $124,000
|
a partial deduction.
|
|
$124,000 or more
|
no deduction.
|
| married filing separately |
less than $10,000
|
a partial deduction.
|
|
$10,000 or more
|
no deduction.
|
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
