topic Re: IRA contribution in Retirement tax questions

IRA contribution

crazycowboy59 — Sun, 01 Mar 2020 15:38:10 GMT

My wife and I are retired and I have 2 part time jobs (about $8K in income). I did not withhold any taxes from my 1099 income. We receive monthly social security.

In previous years, I was able to contribute to my wife's IRA and that lowered my tax due. For some reason, when I contribute to her IRA for 2019, my tax due does not decrease.

Any idea why this is not working for me?

Re: IRA contribution

Critter — Sun, 01 Mar 2020 15:47:48 GMT

IRA contributions are deductible against federally taxable income but will have no effect on the SE taxes you owe on the self employment ... review the return to see what is happening. If your only incomes was the SE & SS then you should make a ROTH contribution instead as the TRAD IRA is doing nothing for you.

Re: IRA contribution

macuser_22 — Sun, 01 Mar 2020 15:51:45 GMT

1) If you are exceeding the contribution limit then the IRA interview should tell you.

2) More likely your taxable income is so low that you owe no tax after the standard deduction so there is not tax to reduce. Your deduction should be on Schedule 2 line 19 and on the 1040 line 8a. Your total tax is on the 1040 line 16. If line 16 is zero without the IRA deduction then it cannot be reduced further.