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Ivysun
New Member

I made a traditional IRA contribution of 5,500, it lowered my state tax due, but not my federal tax due. Can anyone explain to me why?

 
3 Replies
DawnC0
Intuit Alumni

I made a traditional IRA contribution of 5,500, it lowered my state tax due, but not my federal tax due. Can anyone explain to me why?

Your deduction is probably limited or disallowed on your federal return and not limited on your state return.  Each state has its own rules regarding tax deductions.  Your IRA contributions are limited on federal return as follows:  

For 2018 - 
Ivysun
New Member

I made a traditional IRA contribution of 5,500, it lowered my state tax due, but not my federal tax due. Can anyone explain to me why?

But turbo tax showed that I am allowed the IRA deduction under the federal return.
DawnC0
Intuit Alumni

I made a traditional IRA contribution of 5,500, it lowered my state tax due, but not my federal tax due. Can anyone explain to me why?

Maybe you got a bigger deduction on the state return.  The deduction amounts are not the same for federal and state.  The links above are for the federal deduction.  And although you may be allowed a deduction - it may be limited.  You will need to look at your tax return to see the exact amount of the deduction.  See Schedule 1 - Line 32
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