Declaring an IRA contribution INCREASES my owed tax !?

[billymac00]

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.

[VolvoGirl · Accepted solution]

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.  

[billymac00]

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

[VolvoGirl]

That's right.  You need income from working.  

See IRS Pub 590-A IRA Contributions

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