How can I deduct a contribution from a IRA taken out in 2021 to reduce my total income? Where do I go?

[MinhT1]

Yes, if you are eligible for a deductible IRA based on your MAGI, you can contribute and deduct a contribution to a Traditional IRA if the contribution is made by April 18, 2022.

In TurboTax, you can enter IRA contributions by following these steps:

• In TurboTax, open your tax return
• Click on Federal in the left-hand column, then on Deductions & Credits on top of the screen
• Scroll down to All Tax breaks, locate the section Retirement and Investments and click on Show more 
• Click Start next to Traditional and Roth IRA Contributions.

TurboTax will let you know if you are eligible to contribute to an IRA.

[riverlake12]

I neglected to tell you I am retired and have no wages other than pension & SSC. I withdrew to much from my investments and now I'm in a higher tax bracket. What need is to reduce my withdrawal by $3,000. Sorry about the mix up. If you can think of anything to put the money to reduce my AGI please forward. Thanks. 

[RaifH]

At this point, it is probably too late to do anything to reduce the taxes owed from your investment income. You are not able to contribute to an IRA if you or your spouse do not have earned income for the year. If you took the money out of a retirement account, you could have re-deposited it, but that must be done within 60 days of the withdrawal. 

It also would have been possible to reduce your taxes by selling any stocks that are currently worth less than what you purchased them for, but it is too late to do that now to apply to your 2021 taxes. 

You can still make a deductible contribution to an HSA for 2021 before April 18, 2022 if you have a high deductible health plan.