@LuvmyEllie wrote:
I don't think TurboTax is working correctly for my IRA deduction.
My wife and I are filing jointly and we want to max out our deductions. Our AGI is under $196,000
We are both 64. I am retired and getting a pension, but returned to work this past year and I am contributing to a 401(k) at work.
She has never worked outside the home.
We both have IRA's and I plan on maxing out at $7,000 each in our traditional IRA's.
After reading the deduction rules, I do not believe we should get a $14,000 deduction because 1) My W-2 clearly shows that I am contributing to a 401(k) and on top of that, 2) I am drawing a retirement pension.
But TurbTax is allowing a full $14,000 deduction. Is this correct?
If your MAGI is over $105K then you should only have a partial deduction. Your spouse should have a full deduction.
View the "Ira Deduction Worksheet" for the calculations that should answer your question. Something must have been entered wrong.
**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.**
