topic Declaring an IRA contribution INCREASES my owed tax !? in Deductions & credits

Declaring an IRA contribution INCREASES my owed tax !?

billymac00 — Mon, 23 Feb 2026 12:10:30 GMT

ok, married couple both retired in our '60s. Did taxes with TurboTax desktop and we owed like $700 for 2022 for Fed/State combined. Wanted to see the effect of making contribution to traditional IRA. So mocked in $2K each for my spouse &I. Watched the computed tax go up after that was entered.

What am I missing?

We both do get pensions from former employer. AGI $83K (pensions), taxable is $53K after deductions.

Re: Declaring an IRA contribution INCREASES my owed tax !?

VolvoGirl — Sun, 19 Feb 2023 02:18:42 GMT

You can only make IRA contributions if you have taxable compensation like from W2 income or self employment . It should have said you were making a excess contribution and giving you a penalty. You can't use pension income for IRA.

Re: Declaring an IRA contribution INCREASES my owed tax !?

billymac00 — Sun, 19 Feb 2023 02:22:01 GMT

well, we have savings, so $$ not from the "income". But, so if not working one cannot contribute to the IRA ?

Re: Declaring an IRA contribution INCREASES my owed tax !?

VolvoGirl — Sun, 19 Feb 2023 02:26:01 GMT

That's right. You need income from working.

See IRS Pub 590-A IRA Contributions

https://www.irs.gov/pub/irs-pdf/p590a.pdf