Every year, I have been deducting $8,000 as a tax credit from my taxable income for a traditional IRA. I think it shows up as a retirement credit, max at $8,000 a year. Which worked out fine, I received a small refund each year and never have to pay any additional tax( I am in Washington state).
Our company gave us a small amount (less than $1,000 a year) as a retirement contribution. (I have never matched it) - I never pay attention to the count in this amount.(Tax program never asked)
Do I need to report this $1,000 amount? I use the FREE online Tax program, and it has never mentioned this in the past. What happens if I get an audit?