I'm retired will an IRA help me with my deductions

dkwwood — Thu, 06 Jun 2019 09:43:17 GMT

Yes, you may be able to increase your refund (or decrease...

Marketstar — Thu, 06 Jun 2019 09:43:18 GMT

Yes, you may be able to increase your refund (or decrease taxes owed) by purchasing a Traditional IRA, and you have until April 17, 2017 to do so.

Although the Roth IRA is not tax deductible as is the Traditional IRA, both may qualify you for the Saver's Credit, which may also increase your refund.

See What Is the Saver's Credit?

For 2016, you can contribute up to $5,500 of your earned income ($6,500 if over 50)

To contribute to a Traditional IRA, you must be under age 70½ at the end of the tax year. You, and/or your spouse if you file a joint return, must have earned income, such as wages, salaries, commissions, tips, bonuses, or net income from self-employment.

Taxable alimony and separate maintenance payments received by an individual are treated as compensation for IRA purposes.

Earned income does not include earnings and profits from property, such as rental income, interest and dividend income, or any amount received as pension or annuity income, or as deferred compensation.

See https://www.irs.gov/taxtopics/tc451.html

To report a Roth or Traditional IRA in TurboTax:

Type in ira contributions in the search box, top right of your screen, then click the magnifying glass
Click the jump to ira contributions link in the search results.
Follow the onscreen instructions to enter

Note: You may be able to contribute to a Roth IRA if over 70 1/2.

topic Yes, you may be able to increase your refund (or decrease... in Retirement tax questions

I'm retired will an IRA help me with my deductions

Yes, you may be able to increase your refund (or decrease...