The maximum 2020 IRA contribution is $6000 ($7000 of over age 50) and must be from earned compensation.
If a Traditional IRA and yiu qualify for a deduction then it will reduce your taxable income by that amount (not the tax). The tax reduction depends on total income and your margional tax rate.
For example if you are in the 24% tax bracket then a $6,000 contribution can be a $1,440 reduction.
**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.**
