Hey, Thanks for taking the time and trying to help me. In online TurboTax which is www.turbotax.com, I only get one chance to update my IRA contributions and that is in Deduction & Credits --> IRA Contributions. Here are the questions that I get and the answers right next to it. I see nondeductible contributions mentioned only once
Question - 1
You can contribute to your IRA (or Roth) until Apri 15, 2021 and your contributions will count toward your 2020 taxes
Select the kind of IRA(s) Mr. or Ms. owns or will contribute for 2020. If you own or contribute to both a traditional IRA and a Roth IRA, check both here and we'll work on the traditional IRA first
Mr. Ms.
X O Traditional IRA
O O Roth IRA
O O None of the above
The answer to Question-1 was Mr. has Traditional IRA.
Question - 2
Is this a repayment of a retirement Distribution?
Was the contribution a repayment of money previously taken out of a retirement plan? In other words are your returning money back to your retirement plan after you took a distribution? (This is not common) Learn More
The answer is No
Question - 3
Tell us How Much You contributed
Enter the total amount Mr. out into a traditional IRA for 2020 even if you later transferred some or all of it to a Roth IRA
Note: Do not enter any of following here
- Rollovers
Mr.'s total traditional IRA contributions - 7,000
Tell us how much of the above contribution for 2020 you contributed between January 1, 2021 and Apr 15, 2021 - 7,000
Question - 4
Did you change your mind?
Tell us if you switched or "recharacterized" any of the $7,000 traditional IRA contribution for 2020 over to a Roth IRA contribution
The answer is NO
Question - 5
Any Excess IRA Contributions Before 2020?
Tell us if Mr. contributed more money to this IRA that was allowed in 2019 or any previous year.
The answer is NO
Question - 6
Any Nondeductible Contributions to Mr's IRA?
Let us know if Mr. made and kept track of any nondeductible contributions to Mr's traditional IRA from 2019 or prior years (This is not common)
Most people do not make or track any nondeductibe contributions to their IRAs
Yes, Mr. made and tracked nondeductible contributions to your IRA
No, Mr. did not make and track nondeductible contributions to your IRA
Answer: I chose
Yes, Mr. made and tracked nondeductible contributions to your IRA
Question - 7
Lets find your IRA basis
Remember, most people with traditional IRAs do not make or track nondeductible contributions that give them a basis other than ZERO
If Mr. did make any nondeductible contributions look at your most recent form 8606 Find the box called total basis and enter the number from that box below. If you never filed a form 8606, just enter 0(Zero)
Mr's total basis as of December 31, 2019 - 0.00
Information - 8
Income Too High To Deduct an IRA Contribution
Mr/s modified adjusted gross income(MAGI) is xxx,xxx which puts Mr. over the limit for IRA deductions. To deduct a contribution, you can't have a MAGI over $124,000 while being covered by a retirment plan at work
Information - 9
Your IRA deduction Summary - 0
Appreciate an answer, so that I can correctly say my contributions for tax year 2020 is nondeductible
