Why does Fed Tax Refund increase when I make Roth contribution?

Mick999 · ‎March 20, 2021

We are in the correct AGI range but it appears TT is not treating a ROTH IRA contribution as an after tax contribution. Our tax refund increases when I put in the maximum Roth contribution allowed. Need to file but this appears to be something in TT that is not working correctly.

AnnetteB6 · ‎March 20, 2021

Perhaps you are receiving the Saver's Credit for your Roth IRA contribution. If so, your Federal tax refund would increase.

Take a look at the following TurboTax article for more information: What is the 2020 Saver's Credit?

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Why does Fed Tax Refund increase when I make Roth contribution?