The base information is on line 12 of ourW2, so why does the program not pick that up and or explain why it does not? The concern is am I not double claiming our IRA contribution. It seems that you failed to explain this in the instructions an could be putting me into the meat grinder which is an IRS audit because you fail to explain that we have to reenter the information the program already has. Sorry but this is a giant FAIL for my good neighbors here in 92129.
The amount in Box 12 of your W-2 is for an employer-provided plan. If you also contributed to an IRA outside of work, the two have nothing to do with each other. The only way they interact is if you are limited by contribution/deduction amounts due to being covered at work and having too high an AGI
If you enter the amount contributed that is shown on your W2 along with the correct letter code for box 12 then the system will assign it automatically to any forms where you will receive a credit if you are entitled. However, if it is entered in box 12 of your W2 then it has almost certainly already been deducted from the income on your W2 so there would be no additional deduction for your contribution, only a retirement savings contribution credit if you are eligible. If you are reentering the amount from your W2 in as an IRA contribution elsewhere in the return then you are entering it twice and receiving a deduction that you should not be.
Thanks for trying to help. However, the company provided the vehicle to make an IRA contribution, but the money comes out of my paycheck. So it is my contribution and not made by the company. So in short, your response does not explain why am I being asked to enter my contribution when it is already part of my W2. Assume that I have not made any other IRA contributions other that what I had deducted from my pay already. So does Turbo Tax already calculate the credit the goverment offers for putting money into my IRA through a payroll deduction? If so, the brilliant people at Intuit should have indicated this on the program.
Thanks. It would be NICE if turbo tax (Intuit) explained this at the beginning of the deduction/credit for Traditional and Roth IRA Contributions section. Something simple, like, "If your IRA contribution is only through your employer and reflected on line 12, there is no need to enter it here."