2016 Tax deductions for retirement

danielle-d-thoma · ‎June 5, 2019

Is the 2016 tax deduction for a retirement plan be in addition to any deductions already taken and will it increase my refund or decrease my tax bill?

MargaretL · ‎June 5, 2019

Yes, you can make an additional contribution to a traditional IRA with our after-tax money (if you otherwise qualify) and this tax deduction is taken in addition to other deductions already taken; it will reduce your Adjusted Gross Income, which may result in increased refund or lower tax bill. However, if you are referring to a retirement plan that you have at work- that is already accounted for on your W-2 form and there is no additional tax break for this other than the fact that you are not taxed on your retirement plan at work (which shows on the W-2 form).

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MargaretL · ‎June 5, 2019

Yes, you can make an additional contribution to a traditional IRA with our after-tax money (if you otherwise qualify) and this tax deduction is taken in addition to other deductions already taken; it will reduce your Adjusted Gross Income, which may result in increased refund or lower tax bill. However, if you are referring to a retirement plan that you have at work- that is already accounted for on your W-2 form and there is no additional tax break for this other than the fact that you are not taxed on your retirement plan at work (which shows on the W-2 form).