ira contribution

Forum|Forum|4 years ago
April 6, 2022
2 replies
5 views

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

Level 15

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

Level 15

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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