On Form 1040, what is the difference between line 27(IRA Deduction) and line 53(Retirement Savings Contrib)?
Is it possible that I could claim both? I am totally confused. It seems like I would qualify to claim both situations! And I contributed to Federal Thrift Savings and made less than 52k for this year. I am trying to rough out my taxes. Is there an IRS site to go to with this question? Or do IRS people frequent this site? I did contribute to Thrift Savings and to IRAs in this year and my Fed pay for the year is about 21k.and it seems that blocks 27 and 53 both apply to me. Could that be possible? Correction.....Line 27 should read line or block 32. Sheet 27 of the instruction book tells you how to figure this out though.
Public Comments
- Don't put anything on line 27 unless you separtely put money into an IRA. Your TSP contribution has ALREADY been excluded from your income (in won't be in the wages box when you get your W-2). Line 53 is a credit. If you have low income and have made retirement contributions (and no withdrawals), it's to reward you for saving toward retirement. You must fill out the form to see how much of a credit you'll get. (Sometime's as much as 10% of what you put in.)
