TurborTax instructed me to make an additional IRA contribution for 2022 to reduce my tax payment. I instructed IRA account to apply the contribution to 2022. I checked the box that asked if I made that contribution in 2023 (which TT said I should). Now the contribution didn't reduce the tax payment.
What do I do?
If I don't check the 2023 payment box, the update to my payment shows. Do I just override and not check the box?
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To verify are you trying to enter a traditional IRA contribution?
Your traditional IRA contributions may be tax-deductible. The deduction may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels. Please see IRA deduction limits for details.
It is a traditional IRA and I have no spouse. What is causing the problem appears to be when I contributed to my 2022 contribution. I don't understand why this matters as long as it's before the April 18 deadline.
Thanks for feedback to all in advance.
Generally, this question only matters if you made a conversion in 2022 from a traditional IRA then it will be entered on Form 8606 line 4.
Can you check if the full deduction is listed on line 20 of Schedule 1?
If I enter total of Box 1 into Box 2, it shows I owe a payment.
If I leave Box 2 blank, it reduces my payment to $0.
When I went to the Final Review, it brought up that if I made an IRA contribution, I could reduce my payment amount. I punched in scenario numbers to ID what would bring to zero. Now, its saying my income is over the MAGI while being covered by a 401K at work. Is that correct? Why didn't TT flag that when it dangled the contribution option?
Text on the page is as follows:
Tell Us How Much You Contributed
Enter the total amount you put into a traditional IRA for 2022, even if you later transferred some or all of it to a Roth IRA.
Your total 2022 traditional IRA contributions: (Box 1 to enter amount here)
Tell us how much of the above total contribution for 2022 you contributed between January 1, 2023 and April 18, 2023 (Box 2 to enter amount here)
Sounds like I'm stuck. Thanks for helping me with sorting this out. I feel a bit misled by TT, and I'll have to remember this next year.
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