Ira contributions getting the most back from taxes

[jakedesnake35]

If I don't contribute to may IRA i owe money. If I do contribute I can not owe. I am trying to find the  amount of money I need to contribute to getting that Value back.

[AmandaR1 · Accepted solution]

Contributing to an IRA does not itself get you any money back. Instead, your contributions are a deduction from your total income for your Adjusted Gross Income (AGI - an important subtotal on your return because deductions, credits and limitations are based on this amount), reducing your taxable income. To check out where you're at, you might find it helpful to preview your form 1040 by following the instructions below: https://ttlc.intuit.com/replies/3302322

You can only get a refund from estimated taxes that you paid on other income throughout the year, such as W-2 withholdings (box 2) or estimated tax payments made to the IRS directly. The best way to test your situation, is entering it into your return as you've been doing because there are limitations. 

Once your Modified Adjusted Gross Income (special subtotal) exceeds 61,000 (single) or 98,000 (married), the deduction starts to phase out and is completely eliminated at 71,000 and 118,000 (respectively). The maximum contribution amount (and therefore deduction) is $5,500 (under 50 years old) and $6,500 (over 50 years old). For more info on making this deduction, see my answer here:https://ttlc.intuit.com/replies/6038175