Tax Planner: Tracking Spouse IRA Contributions 2023 & 2024 Tax Years

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I have made 3 IRA contributions to my wife's Vanguard Traditional IRA so far this year. One each in late Feb., one in late Mar., (both for ty 2023), and the third in early Jul. for ty 2024. At first Tax Planner only showed the contribution for the Feb. txn. in the Adjustments to Income page and only showed it in the Allowable IRA Deduction window at the bottom of that page. I now have the correct total for the YTD IRA deductions since I selected the 'No Projected Amount Button", but the last two contributions do not appear in the Allowable IRA Deduction window! Where are they hiding? If you need a screen shot, send me instructions and I will attempt to provide one.

Best Answer

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    edited July 9 Answer ✓
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    I assume that the contributions were all entered as transfers from taxable accounts in Quicken to the IRA account, not Deposits or rollovers from another IRA for example. If not, please post back for more info. For the contributions to be recorded correctly, they must be entered as a transfer from a taxable account.

    The first thing to check would be to go to the IRA account, click on the gear at the top right, and select Edit account details. Make sure the account type is Traditional IRA and it is selected as Tax deferred. Click on the Tax Schedule button at the bottom and for Transfers in, it should say Form 1040:IRA contribution, spouse.

    Also in the IRA, check that the contributions are listed as ContribX, and when you select the transaction it should show with the correct tax year.

    Now go to Reports > Tax and select Tax Schedule. If you select 2024, this should show your 2024 contribution in the Form 1040 IRA contribution, spouse section. The two contributions for 2023 should show if you select 2023 as the year.

    It all this is correct, then go to the Tax Planner and make sure the year at the top is selected as 2024. Now go to Adjustments and click on Allowable IRA deduction. At the bottom, select No projected amount and you should see the 2024 contribution but not the 2023 contributions that you made this year.

    But if you set the Tax year to 2023, it appears that the Tax Planner does not pick up the 2023 contributions that you made in 2024. It does pick up contributions made in 2023. This looks like a bug in the Tax Planner.

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Answers

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    edited July 9 Answer ✓
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    I assume that the contributions were all entered as transfers from taxable accounts in Quicken to the IRA account, not Deposits or rollovers from another IRA for example. If not, please post back for more info. For the contributions to be recorded correctly, they must be entered as a transfer from a taxable account.

    The first thing to check would be to go to the IRA account, click on the gear at the top right, and select Edit account details. Make sure the account type is Traditional IRA and it is selected as Tax deferred. Click on the Tax Schedule button at the bottom and for Transfers in, it should say Form 1040:IRA contribution, spouse.

    Also in the IRA, check that the contributions are listed as ContribX, and when you select the transaction it should show with the correct tax year.

    Now go to Reports > Tax and select Tax Schedule. If you select 2024, this should show your 2024 contribution in the Form 1040 IRA contribution, spouse section. The two contributions for 2023 should show if you select 2023 as the year.

    It all this is correct, then go to the Tax Planner and make sure the year at the top is selected as 2024. Now go to Adjustments and click on Allowable IRA deduction. At the bottom, select No projected amount and you should see the 2024 contribution but not the 2023 contributions that you made this year.

    But if you set the Tax year to 2023, it appears that the Tax Planner does not pick up the 2023 contributions that you made in 2024. It does pick up contributions made in 2023. This looks like a bug in the Tax Planner.

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  • corndog638
    corndog638 Member ✭✭
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    Thanks for your response, Jim. I double checked the settings on my wife's Ira account and everything is as it should be. The Tax Planner Adjustments to income page was correct until I modified the final two contributions so far this year from The transaction Source account. The 3rd txn, (the one for this tax year) showed up on the bottom window, but the adjustments amount in the tax planner report went DOWN by the amount of the txn!

    I'm not terribly concerned about the exact refund/payment status to the IRS, I just want a horseback guess as I approach year-end. It would be nice to see the contributions on the adjustment page, but no worries! I'll spend the energy working on my own RMDs😁

  • markus1957
    markus1957 SuperUser, Windows Beta Beta
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    Looks like a bug.

    I tested a Cash Transferred In transaction in an IRA account dated in February assigned to TY 2023. It did not show in details section below but did show in the total amount up top for Allowable IRA Deduction. I deleted the transaction and entered one dated today for 2024 and it displayed correctly in both details and the summary amount up top.

    The code seems to get it right by excluding the transaction from displaying in details when 2023 is selected but the amount is still tabulated in the 2024 adjustments total.