What difference would starting an IRA do for my refund

Forum|Forum|7 years ago
June 1, 2019
2 replies
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TurboTax Deluxe Online

fanfare

Level 15

You must actually contribute to an IRA to get a deduction on your tax return.

You have until April 15th to make a contribution for 2016. Make sure the custodian knows which year you want.

macuser_22

Alumni - Champ

What would it do? A Traditional IRA contribution could reduce your tax liability by the amount of the contribution (if you have any tax liability). It is not a refund, but only can lower the tax depending on what tax bracket you are in. If you have no tax liability then it will not change your tax refund. (A tax liability is what is left to be taxable income after all exemptions and deductions have been subtracted.)

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**