If I put $3000 in an IRA, how much will it reduce my federal taxes?

[jacob1422]

Turbo Tax recommended an IRA. Right now I owe $2941 for federal.

[jerry2000]

The only IRA contribution that will reduce your taxes is a deductible contribution to a Traditional IRA. If you are able to make a deductible contribution, it reduces your tax by reducing your taxable income. The maximum benefit is the amount of the contribution times your marginal tax rate. For example, if you are in the 25% marginal tax rate bracket, then a $3,000 contribution would reduce your tax by at most, $3,000 X 0.25 = $750.