Hello and thank you for helping me. I just got out of grad school. I have 73,000 in student loans to pay back. I will be making $58000 a year working for a University. I have a retirement account through work. I am married and my wife has no student loans. We have 1 child. I would like to lower my AGI so I can have lower student loan payments because I have other debt like child support from a previous relationship, rent, car, food, utilities, etc. I would like to open an IRA for my wife so she can have a retirement fund. I just went through Turbo Tax plugging in the numbers to make sure I am having enough money withheld from my pay check to not have to pay taxes in April. When it came to the option for my wife's IRA that I want to open for her with money I make from work, the program was worded as a contribution she would be making even though I put in the program that she didn't work. When it was through, only the $5500 contribution for her IRA showed up - not anything from my contributions to my retirement account through work.========>Correct; that is the max; in general, individuals who are unemployed are not allowed to contribute to retirement accounts such as IRAs because they do not have eligible compensation. However, there is an exception for individuals with spouses who are employed and meet certain requirements. The employed spouse is allowed to make an IRA contribution on behalf of a non-working spouse or a spouse who has little income. These contributions are referred to as "spousal IRA contributions." If you decide to fund a Traditional IRA for your spouse, he or she must be under age 70? for the year for which the contribution is being made. For 2017, the contribution limit is $5.5Kfor most Americans ($6.5K for those over 50 If you do not participate in an employer-sponsored plan, such as a 401(k), you will be able to deduct the full amount of your spousal IRA contribution. If you are covered by an employer-sponsored plan, your ability to deduct your spousal IRA contribution depends on your income and your tax filing status. "If your modified adjusted gross income (MAGI) is over $196k for tax year 2017, you cannot deduct your contribution to a Traditional IRA and cannot contribute to a spousal Roth IRA.you need to contact TB software vendor for tech support.
The end result was that our AGI with only me working was just a bit lower than my income. It was 52,500. How do I get it lower?=====>>lowering your AGI?? Only adjustments to income, also known as above-the-line deductions, decrease your AGI. Other items that reduce your taxable income, such as exemptions and itemized deductions, do not reduce your AGI. Reducing your AGI can help you qualify for additional income tax deductions. If you're looking to cut a few more dollars off your tax liability, you might be able to deduct your contributions to you or as said your spous?s traditional IRA. You can always deduct these contributions if neither you nor your spouse participates in an employer plan. You can also deduct your contributions if you do participate if your income is low enough. Contributions made to an employer plan, including 401(k) and 403(b) plans, also reduce your AGI, but are not taken as a deduction on your tax return because they are already accounted for on your W-2. If you're still paying off your student loans, you can lower your AGI by the amount of interest you pay, up to $2.5K per year if you qualify. You have to be the one who's legally responsible for the loan being paid and your income has to fall below the annual limit. For example, if you have a student loan in your name, and you make the payments, you can claim the deduction;or A health-care savings account is similar to an IRA account, except it isn't primarily for retirement savings. If you purchase your own high-deductible health insurance plan, you are eligible for an HSA. Money can be used from the HSA to pay for medical expenses that are below your deductible amount. Any contribution to the HSA is tax deductible, reducing your adjusted gross income.