We owe taxes. Can we open an IRA to alleviate those taxes?

[aylayne]

If so how do we calculate how much to zero out the taxes we owe?

[SweetieJean]

It is based on your marginal tax rate, subject to the maximum IRA allowed contribution.

So, a $5500 contribution can save you $1375 in Federal taxes if you are in the 25% bracket.

[aylayne]

So how about 28% bracket?  Is there a formula or calculation to decipher the savings?  PS Thanks!