Did you check line 19 on Schedule 1 if it says $1,000?
The traditional IRA contribution will reduce your adjusted gross income (AGI) by $1,000 (above the line deduction) and therefore also lower your taxable income. It won't be lowering your tax dollar for dollar like a Credit. You seem to be in the 12% tax bracket and therefore, a $1,000 reduced taxable income will result in $120 reduced tax. This is correct.
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