Is a Traditional IRA Contribution a part of Schedule 1?

[dmertz · Accepted solution]

The deduction for a deductible traditional IRA contribution will appear on line 32 of Schedule 1.

[AMac0210]

As long as you are eligible for the deduction, it should show up on line 32.  I'm having a major issue in that I'm eligible for the deduction, but turbo tax did not place the amount on line 32, after going through the step by step wizard.  I'm in the process of trying to amend my return.   If I override line 32 to put the amount there, my tax amount due goes down.  However I get a warning about overriding!  My CPA is dumbfounded as we are eligible for this deduction.

[macuser_22]

@AMac0210 - How are you entering the IRA contribution?   You cannot enter it directly on the form since that bypasses all the checks.

Enter IRA contributions here:
Federal Taxes,
Deductions & Credits,
I’ll choose what I work on (if that screen comes up),
Retirement & Investments,
Traditional & Roth IRA contribution.

OR  Use the "Tools" menu  (if online version under My Account) and then "Search Topics" for "ira contributions" which will take you to the same place.

Choose the IRA type and follow the interview.

[dmertz]

If you've entered the traditional IRA contribution as described by macuser_22 and it is deductible, it will appear on Schedule 1 line 32.  If it's not appearing on line 32, TurboTax is either treating either is treating it as an excess contribution and is reporting it on Form 5329 line 15 or TurboTax it as a nondeductible contribution and is reporting it on Form 8606 line 1 (or possibly on both Forms 5329 and 8606).  On which of these three lines does the contribution appear?

[AMac0210]

@macuser_22  Yes that is how I reported the Traditional IRA contribution.  After going through the steps interview, Turbo Tax said good news we qualified for the IRA deduction.  However, it did not place the $5500 from steps interview, into the actual form 1040,  Schedule 1 line 32.  My CPA caught this.   We even went through the entire process again with the steps interview got exact same results - no $5500 on line 32, and it also wasn't calculating!   I just completed my 1040X.   I'm very concerned this may have happened to other users.  We will be getting a good amount back for this correction.    It also was brought to my attention that TurboTax is not calculating my rental depreciation properly!  Even though it's set up as a 27.5 yr asset, we ran the numbers and it is definitely wrong!   My CPA knows of another client this happened to.  I've used turbo tax for over 10 years but this may be the last time.

[AMac0210]

@dmertz

Neither of the those forms you mentioned were generated for the return, we did not have any non deductible contributions or distributions.  Hense, it should have automatically entered the amount on line 32.  Went through the steps interview several times and none of the unusual items applied.  All straight forward.  

[macuser_22]

@AMac0210 - I have been through the IRA contribution interview hundreds of time answering questions and have never seen such a problem or any other report of such a problem.  The only suggestion is to delete the IRA contributions worksheet and then re-enter the IRA contribution.

About the only reasons that the contribution would not show up would be if you did not have sufficient taxable compensation to make a contribution, you were covered by a retirement plan at work, or you are filing a Married Filing Separately tax return.

(As far as rental deprecation - that is outside of my expertise.)

[AMac0210]

macuser_22

My either, I've never had an issue like this.  All the items you mentioned don't apply.    I'm very glad I had my CPA audit my entire return this year.  It could be a glitch on my particular CD, as she downloaded it at her office (to open my return) with the same results.  Either way, we got it worked out.

[VolvoGirl]

And if you are married,  make sure the income and IRA contributions are assigned to the same spouse.  Sometimes the W2 gets entered under the wrong spouse.   

And check if W2 box 13 is Checked for retirement plan.

[AMac0210]

VolvoGirl

Yep spouse to IRA match.  W-2 Box 13 not checked, it's not a company retirement plan.  Thanks

[macuser_22]

---

@AMac0210 wrote:

macuser_22

.  It could be a glitch on my particular CD, as she downloaded it at her office (to open my return) with the same results.  Either way, we got it worked out.

---

Not possible since you cannot file without applying the latest update that totally replaces the CD with the current version.   I suggest that if you wish to pursue, that that you contact customer support who can screen share with you to ascertain the root cause of your issue.   All we can do in a public forum is offer our experience and guess.

Here is a TurboTax FAQ for contacting customer support.

https://ttlc.intuit.com/questions/1899263-what-is-the-turbotax-phone-number

[dmertz]

Was it entered as a Roth IRA contribution?  Roth IRA contributions are not deductible and if it's not an excess contribution would not appear anywhere on your tax return (expect possibly on Form 8880 if you are eligible for the tax credit determined on that form.

Since you are using the CD/download version of TurboTax, examine the IRA Contribution Worksheet in forms mode.  If it doesn't appear on that worksheet, it hasn't been entered as a regular traditional or Roth IRA contribution.