1040-US: Calculation of IRA contribution amount

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Question

Is the calculation the same when using the calculated traditional IRA deduction option versus entering a traditional IRA contribution amount?

Answer

Yes. Enter 1 or 2 in the Have program compute IRA contribution field in Screen IRA. The application calculates the IRA contributions for the taxpayer or spouse calculate with the higher compensation. The application then automatically calculates the IRA contributions for the taxpayer or spouse with the lesser compensation. When you select the calculated traditional IRA deduction option and input exists for the traditional IRA contribution amount, the option overrides amounts you enter in the Traditional IRA contribution field in Screen IRA, and calculates the maximum allowable deduction without regard to the traditional IRA contributions entered.

Press CTRL+F to review the amounts in the Traditional IRA Deduction Worksheet.

Related topic: Individual retirement account FAQs (1040)

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