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Can I take an IRA deduction?

Article ID: 35026  

Question
Can I take an IRA deduction?

Answer

If you made any nondeductible contributions to a traditional individual retirement arrangement (IRA) for 2014, you must report them on Form 8606.

If you made contributions to a traditional IRA for 2014, you may be able to take an IRA deduction. But you, or your spouse if filing a joint return, must have had earned income to do so. For IRA purposes, earned income includes alimony and separate maintenance payments reported on line 11. If you were a member of the U.S. Armed Forces, earned income includes any nontaxable combat pay you received. If you were self-employed, earned income is generally your net earnings from self-employment if your personal services were a material income-producing factor. For more details, see Pub. 590-A. A statement should be sent to you by June 1, 2015, that shows all contributions to your traditional IRA for 2014.

Use the IRA Deduction Worksheet to figure the amount, if any, of your IRA deduction. But read the following 11-item list before you fill in the worksheet.


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Views: 762 Created on: Jun 15, 2013