Do I enter my contribution to my Roth IRA on line 15a or 15b on IRS form 1040?
I'm new to IRA's and I opened a Roth for 2007. I contributed the max of $5,000. Do I enter that amount in line 15a (which I assume will not then be taxed) or 15b (which I assume will be taxed)? Also, can I file a 1040-EZ? I do not have $1,500 in taxable interest, but am wondering if by opening a Roth, I am ineligible to file the EZ form.
Public Comments
- Neither. Those two lines are for money coming out(distributions). Roth IRA contributions are not deductible(traditional IRA contributions are deductible) and are certainly not taxable. You can use the EZ form.
- Your Roth contributions don't go anywhere on your tax return unless your income is low enough for you to qualify for a Retirement Savings Tax Credit. Check that out. You won't be able to use 1040EZ but you'll save money on your taxes. Remember, adding more complex forms often saves you money. Don't be allergic to the concept. Explore and read.
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