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Allowable IRA Deduction – Calculation Error?
Allowable IRA Deduction – Calculation Error?
My wife and I file jointly and have MAGI of $139K. I have both an employer sponsored pension and a 401K with employer match. My wife does NOT have either pension or 401K through her employer and box 13 is blank on her W-2. I would think that her $6500 IRA contribution would be already entirely disallowed by the Turbotax calculation because of our MAGI and my pension, but it doesn’t recalculate the lower refund unless I select “Yes” for box 13 on her W-2. Is there an error in the calculation logic? Shouldn’t it already disallow her IRA contribution without regard to whether or not her box 13 pension declaration is marked “Yes”? It seems to me that Turbotax is double-counting the disallowed IRA contribution.
My wife and I file jointly and have MAGI of $139K. I have both an employer sponsored pension and a 401K with employer match. My wife does NOT have either pension or 401K through her employer and box 13 is blank on her W-2. I would think that her $6500 IRA contribution would be already entirely disallowed by the Turbotax calculation because of our MAGI and my pension, but it doesn’t recalculate the lower refund unless I select “Yes” for box 13 on her W-2. Is there an error in the calculation logic? Shouldn’t it already disallow her IRA contribution without regard to whether or not her box 13 pension declaration is marked “Yes”? It seems to me that Turbotax is double-counting the disallowed IRA contribution.
