Professional Editions – Retirement Plans – Investing
If a taxpayers employer offers a tax-deferred retirement plan, such as a traditional 401(k) or 403(b), contributions made to the plan are generally pre-tax and are not included in taxable wages. Because these contributions are already excluded from income, they are not deductible on a tax return.
Some taxpayers may still be able to make a deductible contribution to a traditional IRA, depending on their income, filing status, and whether they are covered by a workplace retirement plan. Review the IRA Contributions section of the program to determine eligibility. A deductible IRA contribution can reduce taxable income. Taxpayers may also qualify for the Saver’s Credit, depending on income.
After you enter the required information, the program will calculate the deductible amount, if any. For additional information, refer to IRS Publication 590-A.
To enter or review IRA contribution entries in the TaxAct Professional Editions program, follow these steps:
- From within your TaxAct return, click Federal.
- Click the IRA Contributions drop-down, then click the appropriate IRA contribution type.
- Complete the rest of the interview process.