IRA'S

[whitebobev]

I SHOW $7000 CONTRIBUTION FOR REGULAR IRA BUT TURBO TAX SHOWS ONLY SAVING ON $1169. WHY ?

[MinhT1]

The IRA deduction is a deduction and not a tax credit. It does not reduce your tax liability dollar for dollar. It is a deduction which reduces your taxable income.

In your case, the $7,000 reduction in taxable income has led to a tax savings of $1,169.