Where do I enter my Simple IRA contributions. I'm allowed $14k for 2022 and contributed $11,400 and TurboTax is telling me I went over my limit

[amy_blakeley]

Turbo tax somehow thinks I have a MAGI limit of $78000 for this section so I think I'm entering it in the wrong place?

[LindaS5247]

If you made a Traditional or Roth IRA contribution, you'll enter the amounts as follows:

1. Clicking on the Federal Taxes tab
2. then Deductions & Credits
3.  then scroll down to Retirement & Investments and 
4. select Traditional & Roth IRA Contributions 
5. Then follow the prompts

You can also access this entry by:

1. Sign into your TurboTax account.
2. Open or continue to your return.
3. In the search bar, type IRA contributions and select the Jump to link in the search results.
4. We'll take you to the Traditional IRA and Roth IRA screen, where you can start the IRA interview.

In order to contribute to a Roth IRA, you must have earned income. Single tax filers must have a modified adjusted gross income (MAGI) of less than $144,000; if married and filing jointly, your MAGI must be less than $214,000 for 2022. The amount of money you can contribute per year is based on your income level. 

Click here for additional information on Deductions Allowed for Contributions to an IRA.

[amy_blakeley]

Hi Linda! I do NOT have a Traditional IRA. I have a SIMPLE IRA, which is like a 401(k) and can make pre-tax contributions from paycheck plus contribute outside of the paycheck via a standard contribution just like an IRA. The 2022 limit for Simple IRAs is $14,000.

[Vanessa A · Accepted solution]

You will not enter the standard contribution portion into TurboTax.  The only part that is tax deductible is the portion made via your paycheck as a salary reduction. This is amount is excluded from box 1 of your W2. The employee contributions that you make outside of your paycheck are not tax deductible.  

[amy_blakeley]

Thank you, Vanessa. That is clear and understood- no need to enter them anywhere as they are accounted for as pre-tax deductions from my salary. 

[JTstag]

Hi Vanessa,

My employer does NOT withhold wages for the SIMPLE IRA. Instead the financial institution withdraws them from my (and all other participating employee's) checking accounts on a twice-monthly basis. So in other words, similar to how my Traditional IRA used to be, it's initially taken post-tax but (hopefully) reported in my tax returns in order to lessen gross income.

Are you saying that none of these are tax deductible?

[AbrahamT]

That's correct. See HERE under Subcaption  "Can employees deduct the salary reduction contributions they make to the SIMPLE IRA plan on their Form 1040"?  

The only way you can get those tax benefits is if they come off directly from your salary on a "pretax basis. and as such you won't report it as income. Once your employer deducted the amount on an after tax basis to your account, you "CANNOT" use this amount as a IRA deduction off your tax return. 

However, you may be able to retain the tax benefits if you use one of these methods, see HERE to correct a failure. 

This would be something you would have to take up with your employer though.

[WonderProfessor]

If you are self-employed, you can enter the Simple IRA contributions in the [Wages & Income] section under [Business Deductions and Credits], [Self-Employed Retirement Plans]. The other respondents just assumed that you were an employee. 

[amy_blakeley]

I have a Simple IRA, not SEP IRA. I am not self-empoloyed. A Simple IRA is offered by some employers with fewer than 100 employees.

[WonderProfessor]

Ah, then the other respondents were correct. If you are an employee, the contributions have already been subtracted from your gross income. If you are unsure, look at your gross income from your paychecks and compare that to the amount that your employer is reporting for your wages.

[JTstag]

Didn't mean to post an answer here and now it won't let me delete, only edit. But thanks for the help!