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Level 1
May 31, 2019
Question

Say I owe $2500 in taxes and decided to put that into an IRA, how much will that save me on my taxes - How much would I have to pay?

  • May 31, 2019
  • 2 replies
  • 29 views
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    2 replies

    Alumni - Champ
    May 31, 2019

    Assuming you qualify for a Traditional IRA, it depends upon your marginal tax rate. For example, a $5,000 IRA saves you $1,250 in Federal taxes if you are in the 25% bracket.

    Level 12
    June 7, 2019

    Try this refund tool to determine the result of a Traditional IRA contribution.Tax Caster

    A Traditional IRA may reduce your taxable income and qualify you for the Saver's Credit