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roycarterpap
New Member

I owe the federal 2285.00 and the state 2020.00. how will opening a trad. ira help me lower my tax debt?

What if I opened a ira for both my wife and myself. in the amount of 5500 each?
1 Best answer

Accepted Solutions
CherylW
Level 3

I owe the federal 2285.00 and the state 2020.00. how will opening a trad. ira help me lower my tax debt?

One cool thing about Turbo Tax is the ability to do a "what if" scenario. 

Make sure that your info's all input, and before you file, 

  1. Go to Deductions & Credits

  2. Go down to Retirement and Investments

  3. Click on the Start or Update button by Traditional and Roth IRA Contributions

  4. Check the box by Traditional or Roth, whichever you want. 

  5. You can put any amount in, just to see what it's going to do to your return. 

To see the effects,  

  1. Go to My Account

  2. Go to Tools. 

  3. Go to View Tax Summary

  4. Go to Preview my 1040

Your IRA deduction will show up on line 32 of Form 1040.  Experiment!  Just be sure to change it to your final decision before you e-file. 

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1 Reply
CherylW
Level 3

I owe the federal 2285.00 and the state 2020.00. how will opening a trad. ira help me lower my tax debt?

One cool thing about Turbo Tax is the ability to do a "what if" scenario. 

Make sure that your info's all input, and before you file, 

  1. Go to Deductions & Credits

  2. Go down to Retirement and Investments

  3. Click on the Start or Update button by Traditional and Roth IRA Contributions

  4. Check the box by Traditional or Roth, whichever you want. 

  5. You can put any amount in, just to see what it's going to do to your return. 

To see the effects,  

  1. Go to My Account

  2. Go to Tools. 

  3. Go to View Tax Summary

  4. Go to Preview my 1040

Your IRA deduction will show up on line 32 of Form 1040.  Experiment!  Just be sure to change it to your final decision before you e-file. 

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