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 the IRA screen. UltraTax CS calculates the IRA contributions for the taxpayer or spouse calculate with the higher compensation. UltraTax CS 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 the IRA screen, and calculates the maximum allowable deduction without regard to the traditional IRA contributions entered.

To review the amounts, click the Form button and look for the Traditional IRA Deduction Worksheet.

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