My husband and I are self employed. Turbo tax checked the "covered by retirement plan at work" box 1 on IRA deduction sheet. How do I fix this? I did not enter any W2s.

[mrbud]

I am not sure why TT is saying we are covered by retirement plan at work. Did not enter W2s or 401K contributions.  Is this a software glitch?  Where is it coming from? The step by step IRA contribution dialogue does not ask if we are covered by employer retirement plan.

[macuser_22]

TurboTax makes that determination if any of the following are true:

1) Box 13 (retirement plan) on your (or spouses) W-2 is checked,
2) Box 12 on your (or spouses) W-2 contains codes D, E, F, S, or AA/
3) You answered “yes” to the “Are you covered by a Retirement Plan at work” in the interview.
4) You have a self-employed retirement plan.

[mrbud]

Thank you for your response!  The problem is that even though our magi is less than $104K, Turbo tax does not show the full IRA deduction.  Even  with a SEP, married filing jointly should be able to deduct the full IRA contribution, if MAGI is less than $104K.  Is this a bug?

[macuser_22]

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@mrbud wrote:

Thank you for your response!  The problem is that even though our magi is less than $104K, Turbo tax does not show the full IRA deduction.  Even  with a SEP, married filing jointly should be able to deduct the full IRA contribution, if MAGI is less than $104K.  Is this a bug?

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What is on line 2 & 3 on that same worksheet?

[mrbud]

IRA deduction worksheet:

Line 2:  Spouse $0,   Self: $29,436

Line 3: Spouse $7,000,  Self:  $7,000

[MaryM428]

• Federal
• Deductions and Credits
• Retirement and Investments
• Traditional and Roth IRA Contributions
• Go through the screens until you come to the question: Retirement Plan at Work
• Is ___covered a retirement plan at work and answer No

Repeat steps above for each person.

[mrbud]

I tried, but I do not see that question when I go through the screens...

[macuser_22]

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@mrbud wrote:

IRA deduction worksheet:

Line 2:  Spouse $0,   Self: $29,436

Line 3: Spouse $7,000,  Self:  $7,000

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You indicated that you are self-employed - do you have a self employed SEP or SIMPLE plan?   Or other SE retirement plan?

 The amount of deduction should be on line 16 of the worksheet.   If 16 is less than line 4 then follow the line 5-15 calculations to find out why.