I plugged in $5000.00 for a Roth IRA that I have not yet set up / purchased, I did not see any change in either the Federal or State returns. Why is this?

[ldthore1]

I thought by contributing to an IRA, there would be a credit or reduction in our taxes.

[DoninGA · Accepted solution]

Roth IRA contributions are not deductible.

Your Adjusted Gross Income may exceed the amount for being eligible for the Saver's Credit.  See this IRS website - https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-save...