You can make a new IRA contribution if you have earnings from wages or a net profit from self employment. You don't have to add in taxes. You might qualify to make a deductible IRA contribution. You get a deduction on your tax return for it. When you take a distribution it is added to all your other income and taxed at your tax rate.
Here is pub 590A about Contributions
https://www.irs.gov/pub/irs-pdf/p590a.pdf
And 590B for Distributions
https://www.irs.gov/pub/irs-pdf/p590b.pdf
