Traditional IRA Contribution

[Sha CLE 216]

How much of a tax deduction you receive on your 2023 income tax return if you max out contribution $8K before April 15?

[MinhT1]

The maximum contribution in 2024 to a Traditional IRA is $7,000 (plus a catch-up contribution of $1,000 if aged 50 or over).

The tax savings depends on your marginal rate.

See this IRS document.

[Sha CLE 216]

So, I am over 50, it would not be a flat $8K off my Gross Income amount?

[VolvoGirl]

Yes it reduces your gross income.  It doesn't directly reduce the tax.  It reduces the tax by the tax rate you are in.  Like if you are in the 20% tax bracket it will reduce the tax by 20% or $1,600.  

[ThomasM125]

You can use this tax bracket calculator to estimate your marginal federal tax rate:  Federal marginal tax calculator

Multiply that by your allowable traditional IRA contribution to estimate the affect it will have on lowering your income tax.