How to enter Traditional IRA contributions in Lacerte

Follow these steps:

1. Go to Screen 24, Adjustments to Income.
2. Select Traditional IRA from the left panel.
3. Use the left column for Taxpayer information and the right column for Spouse information.
4. Enter contributions in the field IRA contributions(1=maximum deduction) (code 1 taxpayer, code 51 spouse).
   • Enter the amount of contribution or enter 1 to calculate the maximum deductible contribution allowed for the taxpayer and spouse.
5. Enter recharacterizations of taxpayer and spouse contributions in Recharacterizations (codes 2 and 52).
6. Enter the IRA contributions made by the taxpayer and spouse in Contributions Made (Letter Use Only) (codes 3 and 53).

If the Earned Income used to calculate the deduction is incorrect, adjust the amount by entering Other Earned Income [A] (code 4 taxpayer, code 54 spouse).