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Returning Member
posted Oct 5, 2023 2:27:22 PM

TurboTax is giving tax deduction IRA contribution with high AGI

Hi,

 

TurboTax is giving me a tax deduction for an IRA contribution even when I have a AGI well over 204,000.

 

  • Married filing jointly: MAGI less than $204,000 for a full contribution or $204,000 - $214,000 for a partial contribution

I don't know where to find MAGI in TurboTax but it seems like I should not be getting a tax deduction for a traditional IRA contribution.

 

How do I confirm TurboTax is doing the right thing.

 

Thanks,

Jim

0 3 311
3 Replies
Level 15
Oct 5, 2023 2:36:27 PM

If neither you or your spouse are covered by a retirement plan at work then there is no limit on your MAGI.

Look at your W-2's, is the retirement plan checked in box 13 of the W-2? 

Returning Member
Oct 5, 2023 4:33:08 PM

 

>>  by a retirement plan at work 

 

I don't have any W-2 income but I do have self-employed 1099-NEC (and 1099-K) income and a solo 401k.

 

 

 

 

 

Level 15
Oct 5, 2023 4:41:18 PM

TurboTax will not treat your solo 401(k) contribution as a workplace retirement plan until you actually enter the self-employed retirement contribution.  Alternatively, when you go through the traditional IRA contribution section you can answer Yes when TurboTax asks if you are covered by a retirement plan at work.

 

Also check line 12 of TurboTax's IRA Deduction Worksheet to see the MAGI that TurboTax has calculated.