**Tax Year 2018 or earlier** If I received alamony money and claimed it as income. I deposited it in an IRA do I pay tax on both income and the IRA? It looks like I'm being taxed on both entries.

[mdea]

I received a check toward alimony for 16,328.00   I purchased a Roth IRA 4/14/17 to cover 2016 and 2017.  Total invested was 13,000.00 

I entered a total of 37172.88 as income from monthly alimony and the lump sum.  I am being taxed on the total amount (as I should).  When I entered the IRA, it looks like I am being taxed on that amount too.  

Should the 13000.00 be claimed as income?  If there is a penalty to have a Roth IRA can I transfer the money into a regular investment account and only pay tax on it as income?  The Alimony along with my work income and investments from work looks like I made too much money for a Roth IRA.

What can I do to avoid double tax?

Thank You

[DS30 · Accepted solution]

It depends -

You will claim alimony as income but you do not need to claim Roth IRA contributions as income. You also do not report Roth IRAs on your tax return as deductions because these accounts are set up money with funds that have already subject been subject to tax.

Also Roth contributions made in 2017 that related to your 2016 tax year would not be reported anywhere on your 2017 tax return (because they relate to your 2016 tax year).