ira contribution

4 replies
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I'm retired and I would like to bring down my adjusted income for 2021 so I would like to contribute $6000 to my ira. I don't work nor do I have a company 401k plan. When I enter this contribution in turbo tax premium, it doesn't subtract the $6000 from my income and it adds $300 to my tax that I owe to Uncle Sam.

Bsch4477

Level 15

You can only contribute to an IRA if you have earned income.

rsmuranoAuthor

Level 2

I have dividends, and capital gains for 2021, is that earned income?

MinhT1

Alumni - Intuit

No, dividends and capital gains are NOT earned income.

Earned income is basically income from wages or self-employment or profits from a business.

Please read this TurboTax Help topic for more information.

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MaryK4

Alumni - Intuit

Your annual IRA contribution is limited to your gross compensation or $7000 if over 50. If you had no wages, you cannot deduct contributions to an IRA and you would be penalized for putting more in than allowed.

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