https://ttlc.intuit.com/community/taxes/discussion/re-ira-s/01/2054437#M739824 <P><SPAN style="font-size:14px"><SPAN style="font-family:Arial,Helvetica,sans-serif">The IRA deduction is a deduction and not a tax credit. It does not reduce your tax liability dollar for dollar. It is a deduction which reduces your taxable income.</SPAN></SPAN></P> <P>&nbsp;</P> <P><SPAN style="font-size:14px"><SPAN style="font-family:Arial,Helvetica,sans-serif">In your case, the $7,000 reduction in taxable income has led to a tax savings of $1,169.</SPAN></SPAN></P> Tue, 09 Mar 2021 22:57:52 GMT MinhT1 2021-03-09T22:57:52Z https://ttlc.intuit.com/community/taxes/discussion/ira-s/01/2054330#M739789 <P>I SHOW $7000 CONTRIBUTION FOR REGULAR IRA BUT TURBO TAX SHOWS ONLY SAVING ON $1169. WHY ?</P> Tue, 09 Mar 2021 22:43:26 GMT https://ttlc.intuit.com/community/taxes/discussion/ira-s/01/2054330#M739789 whitebobev 2021-03-09T22:43:26Z https://ttlc.intuit.com/community/taxes/discussion/re-ira-s/01/2054437#M739824 <P><SPAN style="font-size:14px"><SPAN style="font-family:Arial,Helvetica,sans-serif">The IRA deduction is a deduction and not a tax credit. It does not reduce your tax liability dollar for dollar. It is a deduction which reduces your taxable income.</SPAN></SPAN></P> <P>&nbsp;</P> <P><SPAN style="font-size:14px"><SPAN style="font-family:Arial,Helvetica,sans-serif">In your case, the $7,000 reduction in taxable income has led to a tax savings of $1,169.</SPAN></SPAN></P> Tue, 09 Mar 2021 22:57:52 GMT https://ttlc.intuit.com/community/taxes/discussion/re-ira-s/01/2054437#M739824 MinhT1 2021-03-09T22:57:52Z