My income dropped a lot last year, and I believe I am finally eligible to contribute to Roth IRA for 2023. However, turboTax still says that: It turns out you don't qualify for a retirement tax break. You can still contribute up to $6500 to an IRA, but because of your income, you are not eligible to tax a deduction this year. And I would like to understand what tax break it is talking about...
Not the Roth, the tax break is for a traditional IRA contribution. If you contribute to a traditional IRA, Roth IRA contributions aren’t deductible, you may be able to deduct your contribution, depending on whether you were covered by an employer based plan and your income.
Traditional IRAs
These charts show the income range in which your deduction may be disallowed if you or your spouse participates in a retirement plan at work:
2023
Not the Roth, the tax break is for a traditional IRA contribution. If you contribute to a traditional IRA, Roth IRA contributions aren’t deductible, you may be able to deduct your contribution, depending on whether you were covered by an employer based plan and your income.
Traditional IRAs
These charts show the income range in which your deduction may be disallowed if you or your spouse participates in a retirement plan at work:
2023