I was covered by a retirement plan at work. Will this affect the amount of my IRA deduction?
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.
TaxSlayer 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, TaxSlayer will determine if your deduction is limited and calculate the amount of your deduction, if allowable.
For more information regarding income limitation and deduction limits, please review Publication 590.
TaxSlayer Entry: To report your IRA Deduction, log into your TaxSlayer account and select Federal Section >> Deductions (sub-navigation bar) >> Enter Myself >> Adjustments >> IRA Deduction.