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haysej
New Member

IRS shows that military pension is excluded from MAGI for IRA limits. How to I get TurboTax to reflect this?

 
11 Replies
MichaelL1
Level 15

IRS shows that military pension is excluded from MAGI for IRA limits. How to I get TurboTax to reflect this?

can you add a comment where you see that the pension income is excluded from MAGI so I can do some research on this.
DoninGA
Level 15

IRS shows that military pension is excluded from MAGI for IRA limits. How to I get TurboTax to reflect this?

The Modified AGI worksheet in IRS Publication 590-A does not reference anything concerning military pensions as being excluded from the MAGI calculation for an IRA - <a rel="nofollow" target="_blank" href="https://www.irs.gov/publications/p590a#en_US_2016_publink100025076">https://www.irs.gov/publications...>
haysej
New Member

IRS shows that military pension is excluded from MAGI for IRA limits. How to I get TurboTax to reflect this?

Is "military pension" not considered "pension?" 590-A indicates that compensation for purposes of an IRA does not include income from pensions.
haysej
New Member

IRS shows that military pension is excluded from MAGI for IRA limits. How to I get TurboTax to reflect this?

590-A Table 1-1 shows that compensation for purposes of an IRA excludes pensions
DoninGA
Level 15

IRS shows that military pension is excluded from MAGI for IRA limits. How to I get TurboTax to reflect this?

The worksheet for MAGI does not indicate pensions at all.
levisncap89
New Member

IRS shows that military pension is excluded from MAGI for IRA limits. How to I get TurboTax to reflect this?

Understood. He's misreading table 1.1
haysej
New Member

IRS shows that military pension is excluded from MAGI for IRA limits. How to I get TurboTax to reflect this?

I don't understand.  Does table 1.1 not indicate that pension is excluded from AGI for IRA purposes?
MichaelL1
Level 15

IRS shows that military pension is excluded from MAGI for IRA limits. How to I get TurboTax to reflect this?

Table 1 shows it is not compensation, so it not considered earned income in taking an IRA deduction.  It is not referring to the MAGI limits in table 1.
haysej
New Member

IRS shows that military pension is excluded from MAGI for IRA limits. How to I get TurboTax to reflect this?

OK thanks, so for the purposes of determining how much of my contribution is deductible I must include my military pension income?
MichaelL1
Level 15

IRS shows that military pension is excluded from MAGI for IRA limits. How to I get TurboTax to reflect this?

yes, it will be part of the MAGI computation.  I am putting as answer below so we can close this question out as answered.
MichaelL1
Level 15

IRS shows that military pension is excluded from MAGI for IRA limits. How to I get TurboTax to reflect this?

Yes, Military pension will be part of the MAGI computation.  I am putting as answer below so we can close this question out as answered.

Thank you for your service and happy we could clarify this for you. 

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