Where do I report IRA contributions on my tax return?

When filing your Form 1040, contributions to a Traditional IRA or a Roth IRA are reported in different places. Here’s a breakdown of where and how to report your IRA contribution:

1. Traditional IRA Contribution (Deductible)

If you made a deductible contribution to a Traditional IRA, it can reduce your taxable income. However, it is not reported directly on the 1040 form itself. Instead, it’s reported on Schedule 1 of your tax return.

Where to report:

• • On Schedule 1 (Additional Income and Adjustments to Income), you will report your Traditional IRA deduction on Line 20 (IRA Deduction).
  • The deduction carries over to Form 1040 on Line 10a, which is the section for “Adjusted Gross Income (AGI).”

Note: This is not to be confused with contributions to qualified plans that go on line 16d

Example:

• • If you contributed $5,000 to a Traditional IRA and it’s deductible, you would enter that amount on Line 20 of Schedule 1.
  • This will reduce your Adjusted Gross Income (AGI) on Form 1040 (Line 10a).

2. Roth IRA Contribution

Roth IRA contributions do not reduce your taxable income because they are made with after-tax dollars. Unlike Traditional IRA contributions, they are not deductible.

Where to report:

• • If you qualify for a Roth IRA, there’s no need to explicitly report the contribution amount unless there’s a penalty or excess contribution issue. Roth IRA contributions are not directly reported on Form 1040. However, you will have to report on your tax return if you exceed the income limits for Roth IRA contributions or if you are subject to the 10% early withdrawal penalty. 

Roth IRA Excess Contributions: If you contribute more than the allowable limit (for example, if you are over the income limit), you may need to file an additional form such as Form 5329 to calculate the penalty.