--- title: You May Be Able to Lower Your Taxes With a Last-Minute IRA Contribution description: There's still time to put money into an individual retirement account, or IRA, for 2022. But the deadline is approaching fast. authors: - name: Mary Ellen Cagnassola role: Reporter url: https://money.com/author/mary-ellen-cagnassola/ bio: Mary Ellen (M.E.) Cagnassola is a former Money reporter specializing in Social Security and retirement coverage, with a focus on making complex policy accessible to readers. education: Rutgers University, BA Journalism at_money_since: 2021 articles: 205 covers: - Retirement - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Shopping - Taxes former_staff: true editors: - name: Julia Glum role: Managing Editor url: https://money.com/author/julia-glum/ bio: Julia Glum joined Money in 2018 and specializes in covering financial trends that affect everyday Americans' wallets. She also writes Dollar Scholar, a weekly newsletter that teaches young adults how to navigate the messy world of money. education: University of Florida at_money_since: 2018 articles: 453 covers: - Retirement - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Shopping - Taxes - Technology also_seen_in: - Newsweek - International Business Times - CBS News - Good Morning America - WUSA9 - Pix 11 - The New York Times - Mashable - The Washington Post - CNBC - Politico social: - https://x.com/superjulia - https://www.linkedin.com/in/julia-glum published: '2023-03-28T20:12:14.000Z' modified: '2024-01-10T14:39:53.000Z' section: Retirement tags: - News - Taxes word_count: 701 canonical: https://money.com/lower-2022-taxes-ira-contribution-deadline/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Illustration of a porcelain piggy bank feeding three smaller baby piggy banks.](https://img.money.com/2023/03/News-2022-Lower-Taxable-Income.jpg) With the April 18 [tax filing deadline](https://money.com/tax-deadlines-state-federal-extension/) right around the corner, you might be worried it’s too late to save money on your 2022 federal income taxes. But there’s a way you can potentially still lower your tax bill — or even increase your refund — while funding your [retirement](https://money.com/easy-ways-to-save-for-retirement/). Taxpayers can put money into an [individual retirement account](https://money.com/what-is-an-ira/), or IRA, for the previous year up until the federal tax deadline. This year, that means you’re able to make 2022 IRA contributions (and possibly use them to decrease your taxable income) until April 18, 2023. Adding to your IRA has several advantages in addition to potentially reducing what you owe in taxes. Here’s what you need to know about making last-minute IRA contributions. The maximum you can contribute to all of your IRAs (both traditional and Roth) for 2022 is $6,000, or $7,000 if you’ll be 50 or older by the end of the year. Because some traditional IRA contributions are tax-deductible, you can probably use them to bring down your taxable income for 2022. In turn, you’ll also lower your tax bill or increase your [tax refund](https://money.com/wheres-my-refund/). (FYI: [Roth IRAs](https://money.com/best-roth-ira/) aren’t tax-deductible like traditional IRAs because you devote after-tax money to them. Your earnings in these accounts are tax-free.) You can estimate your savings from IRA contributions while you prepare your tax return by multiplying your [marginal tax rate](https://money.com/tax-brackets/) by the amount of money you contributed. Let’s say your marginal federal income tax rate is 24%: If you contributed the $6,000 maximum to your traditional IRA, you can save about $1,440 in taxes. There are, however, certain exceptions that can limit how much of your IRA contributions you can deduct. If you or your spouse have a workplace retirement plan like a [401(k)](https://money.com/401k-and-401k-rollover/) and have income over a certain level, you won’t be eligible for the full deduction. But if you don’t have a workplace retirement plan, you may qualify to deduct all your contributions up to the limit. See below for details. ## Tax deductions for 2022 IRA contributions If you or your spouse participate in an employer-sponsored retirement plan, this is how much the IRS will allow you to deduct. Note that if you file separately and did not live with your spouse during 2022, you’d be considered single.
filing statusmodified adjusted gross income (MAGI)deduction
single or head of household$68,000 or lessfull deduction up to contribution limit
single or head of householdmore than $68,000 but less than $78,000partial deduction
single or head of household$78,000 or moreno deduction
married filing jointly or qualifying widow(er)$109,000 or lessfull deduction up to contribution limit
married filing jointly or qualifying widow(er)more than $109,000 but less than $129,000partial deduction
married filing jointly or qualifying widow(er)$129,000 or moreno deduction
married filing separatelyless than $10,000partial deduction
married filing separately$10,000 or moreno deduction
Source: IRS
These are the 2022 IRA deduction limits if you or your spouse are not covered by a retirement plan at work.
filing statusmodified adjusted gross income (MAGI)deduction
single, head of household or qualifying widow(er)any amountfull deduction up to contribution limit
married filing jointly or separately with a spouse not covered by a plan at workany amountfull deduction up to contribution limit
married filing jointly with a spouse covered by a plan at work$204,000 or lessfull deduction up to contribution limit
married filing jointly with a spouse covered by a plan at workmore than $204,000 but less than $214,000partial deduction
married filing jointly with a spouse covered by a plan at work$214,000 or moreno deduction
married filing separately with a spouse covered by a plan at workless than $10,000partial deduction
married filing separately with a spouse covered by a plan at work$10,000 or moreno deduction
Source: IRS
[Why Millionaires Don't Have to Pay Any More Social Security Taxes This Year](https://money.com/millionaires-social-security-taxes-income-cap/) [How to File Your Taxes for Free With TurboTax This Year](https://money.com/file-taxes-for-free-with-turbotax/) [Are You on Track for Retirement? 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