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Question re: ira contribution to reduce income to qualify for student loan interest credit
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Question re: ira contribution to reduce income to qualify for student loan interest credit
In theory you can do this, but keep in mind that for married filing joint returns, the student loan interest deduction begins to phase out at $130k, so even if you got your AGI down to $159k, the deduction would be minimal.
The other wrinkle is that the IRA deduction may not lower you AGI:
IRA deductibility - covered by employer plan
IRA
deductibility - NOT covered by employer plan
If you haven't finished yet, you can do the "what-if analysis" at:
Deductions and Credits > Retirement and Investments > Traditional and Roth IRA Contributions
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Question re: ira contribution to reduce income to qualify for student loan interest credit
In theory you can do this, but keep in mind that for married filing joint returns, the student loan interest deduction begins to phase out at $130k, so even if you got your AGI down to $159k, the deduction would be minimal.
The other wrinkle is that the IRA deduction may not lower you AGI:
IRA deductibility - covered by employer plan
IRA
deductibility - NOT covered by employer plan
If you haven't finished yet, you can do the "what-if analysis" at:
Deductions and Credits > Retirement and Investments > Traditional and Roth IRA Contributions
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