Author Topic: Dumb withholding calculator question  (Read 1616 times)

rubybeth

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Dumb withholding calculator question
« on: May 04, 2015, 02:22:20 PM »
So I'm using the IRS withholding calculator (http://www.irs.gov/Individuals/IRS-Withholding-Calculator) to estimate future paychecks once DH graduates in a year, but I'm confused by two sections:"Other credits" and "adjustments." Both of them list IRA as options. If I'm married filing jointly and we max out our t-IRAs, where do I put that $11,000 to estimate our tax liability? Is it considered a "credit" or "deduction"?

If I run it as a credit, we owe no tax. If I run it as an adjustment, we owe over $4,000.

MDM

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Re: Dumb withholding calculator question
« Reply #1 on: May 04, 2015, 03:21:03 PM »
So I'm using the IRS withholding calculator (http://www.irs.gov/Individuals/IRS-Withholding-Calculator) to estimate future paychecks once DH graduates in a year, but I'm confused by two sections:"Other credits" and "adjustments." Both of them list IRA as options. If I'm married filing jointly and we max out our t-IRAs, where do I put that $11,000 to estimate our tax liability? Is it considered a "credit" or "deduction"?

If I run it as a credit, we owe no tax. If I run it as an adjustment, we owe over $4,000.
Traditional IRA amounts are deductions, not credits.