tnnnn
New Member

Retirement tax questions

I did contribute to a personal IRA in 2018, so I do have form 8606. Now I can see where the # difference comes from between the two - the discrepancy between taxable income is equal to the amount I contributed in 2018 to my personal IRA. Now my question is why - why does my IRA contribution decrease our taxable income in one situation but not the other?