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Retirement tax questions
It depends on the details of your tax return.
In general, a deduction will increase your refund, but if you have already reached your maximum potential refund, more deductions don't result in a higher refund.
For example, if you have $40,000 in income and had $3000 in tax withheld and no tax credits. If you have $26,000 in itemized deductions, you will get the $3000 back as a refund.
An additional $7000 IRA deduction won't result in a higher refund because your total tax is already $0.
Check line 24 of your Form 1040. If that number is $0, you can't get a higher refund through more deductions.
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‎April 10, 2023
6:50 AM