Downloaded my W2, checked box 13, it is not checked. Got to the part of the return where I enter my IRA contribution, it says it’s not deductible because I am covered by my employers retirement plan, which I am not. In entering my IRA contribution there were no options that I saw to say I wasn’t covered by a retirement plan.
If you can unmark the checkbox directly on the IRA Information Worksheet without doing an override, that won't cause any problems. It just means that you answered incorrectly at some point when TurboTax asked if you were covered by a workplace retirement plan.
If TurboTax won't let you unmark that checkbox without doing an override, it means that TurboTax is inferring that you are covered by a workplace retirement plan based on box 13 of your W-2, box 13 of your spouse's W-2, or you made a contribution to a self-employed retirement plan.
If box 13 - Retirement plan on your form W-2 isn't checked, then you aren't covered by a retirement plan at work.
Revisit your form W-2 and make sure that box 13 - Retirement is unchecked. If this still doesn't work, then delete your form W-2 and re-enter it manually, leaving box 13 unchecked.
Do you have a spouse who is covered by a workplace retirement plan? If so, that and a high enough MAGI could still make you ineligible for the deduction. If filing jointly, also make sure that you have assigned to the correct spouse any Forms W-2 that you have entered.
Since you appear to be using the CD/download version of TurboTax, you can also open the IRA Contributions Worksheet and see if either of the boxes on line 10 are marked.
It shows me as being covered by a retirement plan, however box 13 of my W2 has nothing checked. Where did TurboTax get this information? Can I edit the IRA contribution worksheet and still pass the error check?
The IRA contribution worksheet shows me as being covered by a retirement plan, however box 13 of my W2 has nothing checked. Where did TurboTax get this information? Can I edit the IRA contribution worksheet and still pass the error check?
If you can unmark the checkbox directly on the IRA Information Worksheet without doing an override, that won't cause any problems. It just means that you answered incorrectly at some point when TurboTax asked if you were covered by a workplace retirement plan.
If TurboTax won't let you unmark that checkbox without doing an override, it means that TurboTax is inferring that you are covered by a workplace retirement plan based on box 13 of your W-2, box 13 of your spouse's W-2, or you made a contribution to a self-employed retirement plan.
I’m having the same issue with IRA contribution.
I have no entry on box 13, and I am not covered by a work retirement plan, but when I enter an IRA contribution Turbo tax is telling me I am over the income limit and NOT calculating the deduction.
How can this be corrected? If there something that needs to be unchecked or adjusted, please advise where. thank you!
@dmertz @kashblack1953 @MinhT1
@db_help_please , do you have a spouse who is covered by a workplace retirement plan? Your spouse being covered can limit the deduction for your contribution, but the MAGI threshold is higher than if you were the one covered.
Do you have items shown in box 12 of your W-2? If so, what are the codes and have the code been correctly selected in box 12 of TurboTax's W-2 form?
Hi, No spouse. No items shown in box 12 or 13 of my W-2's.
Turbotax imported the W-2's. The import does not show any entries for box 12 or box 13.
Anything else to double check? How can I correct this? Is this aTurbotax, bug? thank you
@dmertz
I can only suggest examining TurboTax's IRA Contribution Worksheet (Additional Traditional IRA Contribution Information) and IRA Deduction Worksheet.
The IRA worksheet line 10 has the box checked for "check if covered by a retirement plan at work".
It can not be unchecked on the worksheet. Where is TT getting that (incorrect) info? Is there another place in Turbotax to make the correction. Is that the main problem or am I missing something? Seems other people have had the same question/problem. did you find a solution? @kashblack1953 @MinhT1
@dmertz I appreciate your help. This is shaking my TT confidence. Can this be escalated to TT?
If you are using the download version and are unable to unmark that box on the IRA Contribution Worksheet, it means that it is coming from somewhere else in TurboTax. Entries in box 12 or 13 of a W-2 or entries on the Keogh, SEP and SIMPLE Contribution Worksheet are the only places I know of that can do this.
With the download version of TurboTax, I suggest making a test copy of your tax file and deleting various items until the marking of the offending box. Start by deleting the IRA Contribution Worksheet and reentering your traditional IRA contribution just to confirm that the marking returns automatically. (You could do the same in the online version of TurboTax, but you would be working on your real tax return which is a bit risky and you would have to redo previous entries to restore items that you deleted.)
thank you @dmertz, I am using a downloaded version.
Other than removing the amount of my IRA contribution in the Retirement and Investments section, how can I delete the IRA worksheet or otherwise start fresh on that section?
Removing the dollar amount of the IRA contribution in the Retirement and Investments section still has the box checked on the IRA worksheet. I'm a little baffled because, last year (or previous years) this has not been a problem). Thanks again for your help!
@dmertz, alas, it comes back with same check box on line 10 selected saying I have a plan from work. I can try deleting my W-2's and reentering the info but if the issue persists what other TT help is available? Unless I'm missing something, this seems like a bug TT would want to know about and correct quickly. Without a solution, I can't complete my return : (
Thanks again for your time and help!
The box 'covered by a retirement plan' does not have to be explicitly checked in order for TurboTax to see that you are covered by a retirement plan at work. Take a look at items reported in box 12 of your W-2. If you have deferrals into a retirement plan reported in box 12, then you are also covered by a retirement plan.
Just keep deleting forms and worksheets from your test file until you find the one that is contributing to the marking of the box.
Hi @AnnetteB6 Thanks for jumping in. To summarize:
No spouse and no items shown in box 12 or 13 of my W-2's.
Turbotax imported the W-2's, and the import does not show any entries for box 12 or box 13, but the IRA worksheet line 10 has an X indicating that I am covered by a retirement plan at work. The check box on the IRA worksheet can not be unchecked. I have not seen the question come up in easy step. Where is TT getting the info and how can I correct it? I did not have this issue last year, or previous years. thank you.
I had the same problem. Even though my W2 clearly had zeros for boxes 12 and 13, TurboTax misread it. To fix it I clicked on documents in the left column, found the problematic W-2, and clicked the edit option on the right.
A business can have a retirement plan. If you have a k-1 or a business on your return, that could create an entry for covered by retirement plan. If you have no k-1, no business, nothing but a w2, delete the w2. Do not import it. Type it in manually.
Turbo Tax made the SAME mistake for us :( ... Thank you for solving this @cjaenicke
I found that even though the *paper* version of my W-2 I received did not have Box 13 (Retirement plan) checked, the electronic version TurboTax imported from ADP did have it checked. I did find a place to uncheck the option in TurboTax which though I "was covered by employer retirement plan". Unfortunately, as soon as I saved/exited/restarted TurboTax, the software again silently lost my IRA contribution deduction.
To fix, I went directly to the "forms", selected my W-2, unchecked Box 13, saved/exited/restarted, and this time my IRA contribution was being honored correctly in TurboTax.
had the same frustrating issue and after some digging, i found the issue [ atleast for my case ]. if you go to;
>> forms
>> open forms
>> search 'IRA'
>> open the IRA contribution wks
>> up top there's a 'QuickZoom' button for the Keogh, SEP and SIMPLE contributions section, click on that
>> now under this section, there's checkboxes for BOTH you and spouse, uncheck the box you do not want
this should get the checkbox under covered by a workplace retirement plan unchecked.
hope this helps.
thanks