Yes.
The IRA section comes at the end of the TurboTax interview. You will not get a $4500 refund just because you added $4500, but if you meet the income limits the $4500 will be deducted from your income which will reduce your tax liability.
To qualify for the full annual IRA deduction in 2017, you must either:
- not be eligible to participate in a company retirement plan, or
- if you are eligible, you must have adjusted gross income of $62,000 or less for singles, or $99,000 or less for married couples filing jointly.
- If you are not eligible for a company plan but your spouse is, your traditional IRA contribution is fully-deductible as long as your combined gross income does not exceed $186,000.
For 2017, the maximum IRA contribution you can make is $5,500 ($6,500 if you are age 50 or older by the end of the year). For self-employed persons, the maximum annual addition to SEPs and Keoghs for 2017 is $54,000.
