Premier Turbotax 2023 is telling me I'm not eligible for a Roth IRA!

[bill12215]

After answering a series of Roth IRA contribution questions you come to this question to which I answer ‘No’.

The question above is followed by this statement about your IRA deduction (does not say Roth IRA deduction).  I am not close to the MAGI 2023 limit of $138,000.  Why is it stating that I cannot take the Roth IRA deduction???

Even after I complete my return and come back to this the result is still the same.  It there a bug with TurboTax?
Thanks

[Critter-3]

Ok ... a ROTH contribution is never deductible on an income tax return ... only traditional IRA contributions can be deductible.

However the ROTH  CONTRIBUTION could be limited  based on your income level. 

[bill12215]

Thanks for the reply.  My intent is to contribute $7,000 (I'm over 65) for 2023.  My MAGI for 2023 is under the limit of $138,000.  Suspect there is a bug in Turbotax where it not using my MAGI correctly.  Was hoping someone could confirm.

[Buckerou]

Does the amount you are using as your MAGI have actual Earned Income? i.e. from employers W2?

[bill12215 · Accepted solution]

Looks like it was an operator problem.  I've been burned with Roth IRAs in the past and wanted to make sure that never happens again.  To me, the message that Turbotax gives is misleading when it replies "Your IRA Deduction is $0" while you are inputting Roth IRA information. 

What I did to get a response out of Turbotax that make sense to me and indicates to me that my $7500 contribution is allowed is I entered my amount as $7501.  Then it yelled at me that I was $1 too high.  That implies my 'real' $7500 amount was accepted as allowed.  Below is the message I received when I purposely entered the wrong amount (I have since corrected it).

 

[taxpayer1776]

The same thing happened to me this year. It told me I earned too much so I was forced to dissolve my Roth IRA and convert it into traditional… that was absolutely wrong and now I’m angry. Their support team was also no help to me the lady had no clue what she was talking about even though I paid extra money to get assistance.