445695
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Attend our Ask the Experts event about Tax Law Changes - One Big Beautiful Bill on Aug 6! >> RSVP NOW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Does the traditional IRA reduce your AGI dollar for dollar?

If I owe 5,500 in taxes, and I contribute 5,55 to a traditional IRA, wi it reduce my taxes dollar for dollar? 

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies

Does the traditional IRA reduce your AGI dollar for dollar?

Your AGI is not the same as the taxes you owe.
AnnetteB
Intuit Alumni

Does the traditional IRA reduce your AGI dollar for dollar?

Making a deductible contribution to a Traditional IRA does reduce your Adjusted Gross Income (AGI) dollar for dollar.  That does not reduce your taxes dollar for dollar. 

The AGI is reduced, thus your taxable income is reduced.  This reduces your taxes, but only by the amount of taxes that you would have paid on the amount of money contributed to the IRA. 


Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question