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Question
If I contributed $1500 to my traditional IRA in 2020, how much of a tax break do I get?
- Anonymous
Answer
According to the IRS, the $1500 you've paid reduces your taxable income by that amount, and you don't have to pay taxes on it. You can multiply $1500 by your tax rate and find out how much you've saved paying to the IRS.

Melissa Pedigo

Melissa Pedigo has been a CPA for over 20 years and she is one of the only CPA copywriters in the world. With a vast knowledge of U.S. tax and accounting, she’s able to write about tax and finance topics from a unique perspective...as an industry expert. When she’s not writing or being an accounting nerd, you’ll find her watching and playing tennis, reading, tending to her half-grown garden, and studying foreign languages

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