No IRA deduction showing

[Ed225]

My wife and I are both on social security but I have a small amount of self employment income. To offset my self employment tax, I contributed to an IRA but the amount (1k) is not reflected by any change to our gross income. In fact, if I remove it from the Turbotax program, it makes no difference. Why?

[DanaB27 · Accepted solution]

IRA deductions can only reduce your adjustable gross income and therefore your taxable income. Most likely your taxable income was already 0 if you had only had Social Security and a small self-employment income. You can check your taxable income on line 11b on form 1040. The self-employment tax is an additional tax and is a separate tax from the income tax. Please see What is the self-employment tax? for additional information. 

To preview your 1040:

1. Click on "Tax Tools" in the left menu
2. Click "Tools"
3. Click "View Tax Summary" in the Tool Center window
4. Click on "Preview my 1040" on the left