Tax Law (Questions About Taxes)/Roth IRA

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Question
Hello,

You recently posted a question to WILLIAM D MCCONNAUGHY, CPA in category Tax Law (Questions About Taxes):

Hello John,

I recently started hearing about Roth IRA's so decided to put maximum $5,500 into one at my credit union yesterday for 2014 from my savings account. Do I have to claim that on my 1040A ?? Can I put another $5,000 in come January 1st for 2015? Makes way more money than sitting in my savings account . Also, I have a daughter who started college in September 2014. What can I use for deductions on my 1040A???

Thanks,
Mike

Answer
Mike,

You can make the maximum contribution to a Roth or Traditional IRA each year, not to exceed the current limit for all IRA's.  With a Roth, you do not get a current deduction, so it is not a part of your 1040 each year.

Tuition and some fees may be taken as either the Lifetime Learning Credit or the American Opportunity Tax Credit if you meet the criteria.  You would have to complete Form 8863 and attach it to your 1040A.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA

Expertise

I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

Experience

I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

Organizations
FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

Publications
The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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