topic $6000 IRA deduction only deducted $900. It says, "You need to complete your return before we can show you the results." Will I see the full deduction when I file later? in After you file

$6000 IRA deduction only deducted $900. It says, "You need to complete your return before we can show you the results." Will I see the full deduction when I file later?

peppertron — Tue, 04 Feb 2020 16:51:51 GMT

Re: $6000 IRA deduction only deducted $900. It says, "You need to complete your return before we ...

DianeC958 — Tue, 04 Feb 2020 17:24:20 GMT

Possibly, there are limits on if you can deduct the full $6,000 you contributed to your IRA without all of your information in the program it cannot calculate the deductible amount correctly.

Once you have added all of your tax information check to see if the full amount is deductible. If the full amount of your contribution is not deductible you need to remove an excess contribution and earnings before April 15, 2020, to avoid paying a penalty.

Link to Boost Your Retirement Savings

Re: $6000 IRA deduction only deducted $900. It says, "You need to complete your return before we can show you the results." Will I see the full deduction when I file later?

macuser_22 — Tue, 04 Feb 2020 17:34:32 GMT

Since you are posting from self-employed then only your net self-employed income minus the deductible part of the SE tax (normally half of the SE tax) is eligible income to contribute to a IRA.

Also if the deductible part depends on the MAGI and phases out at higher income if you have a retirement plan at work such as a 401(k).

For 2019, $6,000, or $7,000 if you’re age 50 or older by the end of the year; or
your taxable compensation for the year.

(Taxable compensation is generally wages that you worked for - W-2 or net self-employed income minus the deducible part of the SE tax, but can include commissions, alimony and separate maintenance, and nontaxable combat pay ).

See IRS Pub 590A "What is compensation" for details:
https://www.irs.gov/publications/p590a#en_US_2018_publink1000230355

See this IRS link for Traditional IRA deduction limits when covered by a retirement plan at work.

https://www.irs.gov/Retirement-Plans/IRA-Deduction-Limits