Retirement tax questions


@FrauStachowski wrote:

Oh, this is brilliant, thank you so much!

 

Because neither of us has an employee sponsored retirement plan we can deduct our IRA contributions. For 2023 I erroneously failed to include the contribution so I'm guessing that now I need to file an amendment for 2023 and include the $7,500 deductible IRA contribution? And for 2024 I will include the IRA contributions as I should.

Yes you need to report the contribution to a traditional IRA on an amended 2023 tax return.  Start by reporting it as a Roth contribution and then report the Recharacterization.  Instructions are here.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/retirement-income/recharacterize-roth-ir...

 

If the contribution is tax-deductible, you will get a refund if you did not already take the deduction.  If the contribution is non-deductible (due to your income or by choice) then you will generate a form 8606 that you need to keep a copy of. 

 

Yes, new 2024 contributions are reported on your 2024 tax return in the normal way.