My wife and I both retired several years ago and are over the age of 70 now. We both receive social security and I receive a pension monthly payout from my former full time employer. A few years back after retiring I began a part time job. Over those years this part time company had and still has a retirement plan of which I've never participated. Up until this tax year 2024 this employer has not checked box 13, retirement plan. This tax year for the first time box 13 'retirement plan' was checked. In 2024 my wife and I both contributed to our personal Traditional IRA's believing that our contributions will be deductible. When I completed our joint return Turbo Tax indicated that only my wife's contribution was deductible. Since I manually entered the information from my W-2 I went back an unchecked box 13 'retirement plan' to see if this made a difference and it did, TurboTax allowed me to deduct both my wife and my Traditional IRA contributions. This made a significant impact on both our Federal and State tax liabilities. Why would checking and unchecking box 13 retirement plan make such a difference?
