You can either contribute to an existing IRA or create one at the financial institution of your choosing.
Only contributions to a traditional IRA
can be deducted on your return. For 2017, the most that can be
contributed to your traditional IRA generally is the smaller of the following
amounts:
- $5,500
($6,500 if you are age 50 or older), or
- Your
taxable compensation for the year.
Your traditional IRA contributions may be
tax-deductible. The deduction may be limited if you or your spouse is covered
by a retirement plan at work and your income exceeds certain levels.
TurboTax will calculate your
deduction for you.
To enter contributions to a Traditional IRA in
TurboTax, please follow these steps:
- Click
on Federal Taxes > Deductions & Credits
- Scroll
down to the Retirement and Investments section and click on the Start/Revisit
box next to Traditional and Roth IRA Contributions.
[See Screenshot #1, below.]
- On
the Traditional IRA and Roth IRA screen, mark the box for Traditional
IRA and click Continue. [Screenshot #2]
- On
the screen, Did you Contribute to a Traditional IRA?
click the Yes box. [Screenshot #3]
- Click
the appropriate box on Is This a Repayment of a Retirement
Distribution? [Most likely,it isn't.] [Screenshot #4]
- On
the Tell Us How Much You Contributed screen, enter the amount of
your contribution and click Continue. [Screenshot #5]
- Continue
through the screens, entering the requested information
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