If your refund drops after entering a deductible IRA contribution, it is likely that you are losing or reducing a credit on your return that is based on your adjusted gross income (AGI).
To take a closer look at your return and see what is happening, you should preview your 1040 and take a look at your credits, both with and without the IRA contribution being reported. That way you can see what is changing based on the contribution.
Use the steps below to preview your 1040 using TurboTax Online. You may be able to use the Tax Summary page to accomplish the same thing, except you would not know exactly which lines of your return are being affected.
While you are working in your tax return:
- In the navigation area on the left side of your screen, click Tax Tools to expand your choices
- Click Tools, which will open the Tool Center
- Click View Tax Summary under “Other Helpful Links…”
- Click Preview My 1040 to see your actual tax form
Your credits will be shown on lines 48 through 55 and lines 66 through 69.
Note: For 2019, the credits are shown on Form 1040 line 13b and lines 18a through 18d, as well as Schedule 3.
[edited 4/13/2020 | 9:45 am PST]
