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Category: Finding Deductions

Please explain all of the credits and deductions that are available related to retirement and investment.

IRA Deductions 

Generally, any contributions that you (or your spouse, if applicable) made to a Traditional IRA qualify as a deduction on your return. Roth IRA contributions are not deductible.  Sometimes this deduction may be limited.  By entering the amount of your contributions and some other basic information, TaxSlayer will determine if you are entitled to this deduction.


Retirement Savings Contribution Credit 

If you made any of the following retirement savings contributions, you may be eligible for an additional tax credit. Qualifying contributions include:


* Traditional IRA Contributions

* Roth IRA Contributions

* Elective deferrals to a 401(k), 403(b), governmental 457, SEP, or SIMPLE plan

* Voluntary employee contributions to a qualified retirement plan (including a Thrift Savings Plan)

* Contributions to a 501(c)(18)(D) plan


Investment Interest 

Investment interest is interest that was paid on money that you borrowed to buy property that is held for investment. If you paid this type of interest, you may be eligible for a deduction.

Examples of this type of interest include:


* Interest that you paid on securities in a margin account

* Interest you paid on a loan that you took out to invest in a business with someone else

* Interest you paid on a loan that you used to buy stocks


Hint: If you received any of the following K-1s, you can file for this deduction if you have an amount in the corresponding box:


Schedule K-1, Form 1065: Box 13, Code G; Box 20, Code A; Box 20, Code B
Schedule K-1, Form 1120S: Box 12, code G; Box 17, Code A; Box 17, Code B
Schedule K-1, Form 1041: Box 14, Code E


SEP, Simple, Qualified Plan Contributions 

If you were self-employed or a partner, you can generally deduct any contributions you made to a SEP, SIMPLE IRA, SIMPLE 401(k), or Qualified Plan for your employees.