Perhaps your Modified Adjusted Gross Income (MAGI) is the problem. Print out the worksheet to see how TurboTax is calculating your MAGI for a Roth IRA. To calculate your MAGI, add your Adjusted Gross Income (AGI) plus:
- student loan interest deduction,
- foreign earned income and housing exclusions,
- foreign housing deduction,
- excluded savings bond interest,
- excluded employer adoption benefits, and,
- any Traditional IRA deduction reduced by income from a conversion of an IRA to a Roth IRA or a rollover from a qualified plan to a Roth.
You may want to enter your Roth IRA contributions into TurboTax, because:
- Excess contributions to a Roth or traditional IRA might result in a tax penalty.
- You might qualify for the Saver’s Credit
- This will record your Roth IRA basis, which can be useful for future tax calculations
- 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)
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
