Can I contribute my 2022 earnings to Traditional IRA for reducing 2021 taxes?

[johnkgan]

I was a full time student in 2021 and only got employed in Dec 2021. But I did not earn $6000 as salary in 2021, though I got dividends (from my stocks investments that my mom had gifted to me) that amount to $6000. Can I still invest $6000 in Traditional IRA from my salary earned in 2022 and use that to reduce my taxes of 2021 as Turbo Tax says I still have time until April 2022 to contribute to Traditional IRA for 2021 taxes? Thank you.

[VolvoGirl]

No.  If you want to apply it to 2021 you are limited to your actual earned income salary.   BUT a ROTH IRA is not tax deductible and will not reduce your tax return.  You need to contribute to a Traditional IRA to be deductible.

[johnkgan]

Thank you so much! I corrected it to Traditional IRA. So can I use my 2022 salary to contribute to Traditional IRA by April 2022 and use to reduce my 2021 taxes? Thanks again.

[VolvoGirl · Accepted solution]

But not your 2022 salary.  Only your 2021 salary, not the investments.  Turbo Tax will tell you if you try to enter too much.