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If I retroactively pay in to my IRA shouldn't I see my refund increase?
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If I retroactively pay in to my IRA shouldn't I see my refund increase?
There are a few possible reasons for this.
If you are contributing to a Roth IRA rather than a Traditional IRA, there is no deduction.
If your employer has a retirement plan (check your W-2) and your income exceeds certain levels, your deduction can be limited or eliminated.
If you are single, the deduction begins being phased out at $61,000, and is completely phased out at $71,000.
If you are married filing a joint return, the deduction begins being phased out at $98,000 and is completely phased out at $118,000.
If you are married filing a separate return, you only get a partial deduction, and it is completely phased out for income over $10,000.
It's also possible that you are already getting all of your withholding back, in which case your refund wouldn't increase.
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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If I retroactively pay in to my IRA shouldn't I see my refund increase?
There are a few possible reasons for this.
If you are contributing to a Roth IRA rather than a Traditional IRA, there is no deduction.
If your employer has a retirement plan (check your W-2) and your income exceeds certain levels, your deduction can be limited or eliminated.
If you are single, the deduction begins being phased out at $61,000, and is completely phased out at $71,000.
If you are married filing a joint return, the deduction begins being phased out at $98,000 and is completely phased out at $118,000.
If you are married filing a separate return, you only get a partial deduction, and it is completely phased out for income over $10,000.
It's also possible that you are already getting all of your withholding back, in which case your refund wouldn't increase.
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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