If your employer offers a tax-deferred retirement plan, such as a 401k or 403b, any contributions you make to the plan are pre-tax, meaning that the amount you contribute is not included in taxable wages. Due to this, the contributions are not eligible for a deduction on your tax return.
Review the IRA Contribution section of the program to determine if you can make a deductible contribution to an IRA. This could lower your taxable income if there is a credit available on the tax return for after tax contributions to an IRA.
From within your TaxAct® return (Online or Desktop) click on the Federal tab. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
Click IRA Contributions to expand the category and then click the appropriate selection based on your situation
The program will proceed with the interview questions for you to enter the appropriate information
After you enter the information requested in this section of the Q&A, the program will calculate for you the amount of deductible contribution (if any) you can make.
For additional information, refer to IRS Publication 590-AContributions to Individual Retirement Arrangements (IRAs).
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