I contributed the max amount for 2023 to a personal IRA account ($7,500). It was the last entry I entered to best understand the impact on my refund. It only increased my refund by $16.00. Historically the impact has been much more. Trying to understand why it was only a $16.00 and if there's an error?
You'll need to sign in or create an account to connect with an expert.
Yes, that's a surprising result, but there are reasons that can happen.
Usually, a deductible IRA will increase your refund by the percentage of the contribution that matches your tax bracket. For example, you are in the 25% bracket, you contribute $7,500, and your refund increases by $1,875 ($7,500 x 25%).
Here are some reasons why it may not work that way sometimes:
Thank you. Helpful information.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
Raph
Community Manager
1099erGirl
Level 3
Justholly
Level 1
Sachin Kunagalli
New Member
jello77
Level 3
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.