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samteric
New Member

I owe money this year, can I still give some money to an IRA instead?

 
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DS30
New Member

I owe money this year, can I still give some money to an IRA instead?

It depends,

The ability to make a deductible IRA contribution depends on such factors as your filing status, your level of income and if you have a retirement plan through your employer (or your spouse's employer). (screenshot)

If you qualify, you still have time to make contributions to an IRA that you can deduct on your 2016 tax return. When making this contribution, you will need to indicate that your contribution is for the 2016 tax year.

You have until April 18, 2017 for make contributions to an IRA for 2016 tax year.

For more information about IRA contributions and limitations, please refer to this IRS link:

https://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-IRA-Contribution-L...

Go into TurboTax and run a couple of scenarios with various amounts of contributions.

To enter your IRA contributions in TurboTax Online (for TurboTax Online sign-in, click Here , then select "Take Me to My Return") or Desktop, please follow these steps:

  1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
  2. Next click on “Deductions and Credits”
  3. Next click on "jump to full list" or “I’ll choose what I work on”
  4. Scroll down the screen until to come to the section “Retirement and Investments”
  5. Choose "show more", then Traditional and Roth IRA contributions and follow the onscreen instruction (Please note that only Traditional IRA contributions (and not Roth contributions) have the ability to lower your taxable income)

You can check how these contributions are affecting your taxable income by previewing your 1040.

To preview 1040 in TurboTax Online:

  • Sign into https://myturbotax.intuit.com/
  • Under Tax Timeline, click on Continue your return
  • Go to "My Account" > "Tools"
  • Under the Tools Center, select "view tax summary"
  • Select "Preview my 1040"

View solution in original post

1 Reply
DS30
New Member

I owe money this year, can I still give some money to an IRA instead?

It depends,

The ability to make a deductible IRA contribution depends on such factors as your filing status, your level of income and if you have a retirement plan through your employer (or your spouse's employer). (screenshot)

If you qualify, you still have time to make contributions to an IRA that you can deduct on your 2016 tax return. When making this contribution, you will need to indicate that your contribution is for the 2016 tax year.

You have until April 18, 2017 for make contributions to an IRA for 2016 tax year.

For more information about IRA contributions and limitations, please refer to this IRS link:

https://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-IRA-Contribution-L...

Go into TurboTax and run a couple of scenarios with various amounts of contributions.

To enter your IRA contributions in TurboTax Online (for TurboTax Online sign-in, click Here , then select "Take Me to My Return") or Desktop, please follow these steps:

  1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
  2. Next click on “Deductions and Credits”
  3. Next click on "jump to full list" or “I’ll choose what I work on”
  4. Scroll down the screen until to come to the section “Retirement and Investments”
  5. Choose "show more", then Traditional and Roth IRA contributions and follow the onscreen instruction (Please note that only Traditional IRA contributions (and not Roth contributions) have the ability to lower your taxable income)

You can check how these contributions are affecting your taxable income by previewing your 1040.

To preview 1040 in TurboTax Online:

  • Sign into https://myturbotax.intuit.com/
  • Under Tax Timeline, click on Continue your return
  • Go to "My Account" > "Tools"
  • Under the Tools Center, select "view tax summary"
  • Select "Preview my 1040"

View solution in original post

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