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New Member
posted Jun 1, 2019 12:07:51 AM

If I retroactively pay in to my IRA shouldn't I see my refund increase?

When I enter my IRA contribution there is 0 effect on deduction or refund. I thought this would decrease my taxable income

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1 Best answer
Expert Alumni
Jun 1, 2019 12:07:53 AM

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.

1 Replies
Expert Alumni
Jun 1, 2019 12:07:53 AM

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.