Level 3

my 60 yr old taxpayer made 136.834 had a deferal of $4200 and put $7200 into IRA but it wont deduct the ira amount

Forum|Forum|3 years ago
May 4, 2023
2 replies
16 views

My tax payer wants me to amend her return to add the deduction for her $7200 IRA contribution, I put it in the original return though and it did not deduct. Shes yelling at me because her banker said she should get the IRA to reduce her income and tax due. As I said when i put it in the original return. Am I doing something wrong?

This topic has been closed for replies.

IRonMaN

Level 15

Hopefully the banker does banking better than taxes. For someone that is a participant in a retirement plan, your client's income is too high to make a deductible contribution.

Slava Ukraini!

T

TanyataxgirlAuthor

Level 3

So I'm not wrong? The fact that she had the deferal on her w2 disallows the deduction? Because she was mad and said " well obviously the banker knows something you dont". I almost cried.....ALMOST

G

Glossy847

Level 4

Phase out for a deductible IRA is $68,000 -$78,000 for a person covered by a pension and the maximum deduction is $7,000 not $7,200 If you scroll down on the IRA worksheet it will tell you what is allowable She doesn't qualify for a deductible IRA

BobKamman

Level 15

Tell her to get it in writing from the banker so you can sue for defamation. The problem will quickly go away. Maybe the client, too.

Sign up

Login with SSO

Let's get you signed in

Login with SSO

Scanning file for viruses.

This file cannot be downloaded