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Level 1
Feb 13, 2025 5:52 PM UTC
Solved

IRA Deduction

Why is Turbo Tax only treating a portion of my IRA Contribution as deductible. My contribution amount is well within the annual limit.  I contributed about $1300 to my 401K and my income from wages is about $39,000. The software is only treating $560 of my $2500 contribution as deductible.  Is there a bug in the software?

    dmertzAnswer
    Level 15
    Feb 13, 2025 6:17 PM UTC

    Your MAGI for the purpose of an IRA deduction takes into account all of your income, not just wages.  The calculation of MAGI begins with AGI.

    1 reply

    dmertzAnswer
    Level 15
    Feb 13, 2025 6:17 PM UTC

    Your MAGI for the purpose of an IRA deduction takes into account all of your income, not just wages.  The calculation of MAGI begins with AGI.