topic Re: ira contribution in Get your taxes done using TurboTax

ira contribution

rsmurano — Mon, 09 Mar 2026 11:39:10 GMT

I'm retired and I would like to bring down my adjusted income for 2021 so I would like to contribute $6000 to my ira. I don't work nor do I have a company 401k plan. When I enter this contribution in turbo tax premium, it doesn't subtract the $6000 from my income and it adds $300 to my tax that I owe to Uncle Sam.

Re: ira contribution

Bsch4477 — Wed, 06 Apr 2022 23:55:46 GMT

You can only contribute to an IRA if you have earned income.

Re: ira contribution

MaryK4 — Wed, 06 Apr 2022 23:56:24 GMT

Your annual IRA contribution is limited to your gross compensation or $7000 if over 50. If you had no wages, you cannot deduct contributions to an IRA and you would be penalized for putting more in than allowed.

Re: ira contribution

rsmurano — Wed, 06 Apr 2022 23:57:01 GMT

I have dividends, and capital gains for 2021, is that earned income?

Re: ira contribution

MinhT1 — Thu, 07 Apr 2022 15:29:36 GMT

No, dividends and capital gains are NOT earned income.

Earned income is basically income from wages or self-employment or profits from a business.

Please read this TurboTax Help topic for more information.