I owe $4000 in taxes. How much will my taxes be lowered if I open and contribute to a Roth IRA before April 18th?

[AnnaB]

Your taxes would not be lowered as Roth IRA's are not deductible.

You could put money into a Traditional IRA and you may receive a deduction from income.  If you participate in a retirement plan through work (Box 13 is checked on your Form W-2), then there are income limitations regarding whether or not the contribution can be deducted.

You can contribute up to $5,500 or $6,500 if you're age 50 or older. If you are eligible for a deduction, this will reduce your income and save you in tax at a rate of the tax bracket you are in.  For example, if you contribute $4,000 to a Traditional IRA and have no limitations due to income, you would save $1,000 if you're in the 25% tax bracket.

Please refer to the link below for income limitations if you are covered through a retirement plan at work

https://www.irs.gov/Retirement-Plans/2015-IRA-Deduction-Limits-Effect-of-Modified-AGI-on-Deduction-i...

You can always put a test amount into your return and see how it impacts your balance due.  The instructions below will allow you to enter in your IRA contribution.

If you are using TurboTax Online, except Home & Business

1. Click on Federal Taxes
2. Click on Deductions & Credits
3. Check your list for Traditional and Roth IRA Contributions and click Start/Edit; if it is not there, please proceed with the rest of the steps
4. Click on Check for other tax breaks
5. Click on Jump to full list
6. Scroll down to Retirement and Investments and click Show more
7. Click on Start/Edit next to Traditional and Roth IRA Contributions

If you are using TurboTax Desktop or TurboTax Online Home & Business

1. Click on Federal Taxes (Personal if using Home & Business)
2. Click on Deductions & Credits
3. Select I'll choose what I work on
4. Scroll down to Retirement and Investments
5. Click on Start/Update next to Traditional and Roth IRA Contributions

[Manassas]

Depends. You can only contribute to an IRA if you have earned income. If your income is from retirement or investments, you can't contribute. For the amount, it depends on your tax bracket. TurboTax can compute this for you.