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cnlboyd
New Member

How much would we need to contribute to our IRA to offset the 1,200 balance we owe? (I'm figuring us in the 15%)

 
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Marketstar
Level 7

How much would we need to contribute to our IRA to offset the 1,200 balance we owe? (I'm figuring us in the 15%)

For 2017, you can contribute up to $5,500 of your earned income ($6,500 if over 50)

In the 15% tax bracket, a $5,500 Traditional IRA contribution would decrease your balance due roughly $825-, a $6,500 contribution-approximately $975

When you enter a contribution into TurboTax, the program will let you know if and how much of the contribution is deductible- you can then view the result on the refund meter.

You should make the above determination before you purchase an IRA

 


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