If you were covered by a retirement plan (qualified pension, profit-sharing, 401(k), annuity, SEP, SIMPLE, etc.) at work or through self-employment, your IRA deduction may be reduced or eliminated. This depends on the level of your income.
If box 13 Retirement Plan is checked on your W-2 then you are generally considered covered by a retirement plan even if you do not participate.
The program will ask if you (or your spouse, if married) were covered by a retirement plan when you are entering your IRA Deduction information. By answering these questions, the program will determine if your deduction is limited and calculate the amount of your deduction, if allowable.
Where can I enter my IRA Deduction?
To report your IRA Deduction, log into your account and go to:
- Federal Section
- Select My Forms
- IRA Deduction
For more information regarding income limitation and deduction limits, please review Publication 590-A