A contribution to a traditional IRA reduces your AGI… If you already have a small refund… A contribution to a traditional IRA will increase your refund. If you are in the 25% bracket. A $1000 contribution will increase your refund by $250.

You have until April 15th to make a 2007 contribution.

Edit: YES, it will increase your refund.

Assuming that you owe some tax for the year (don’t get all of your federal income tax withholding refunded) then yes, contributing to a traditional IRA will increase your refund.

If your income is still within range, you may contribute to a traditional IRA (as many already have discussed in this thread). The traditional IRA reduces your income and can be designated for a prior year, provided you make the contrib before April 15.

Lower income means lower taxes, so for instance, if you were in the 15% bracket and you contributed $1,000 to a traditional IRA, your refund increases by $150.

If there are still more questions, it’s best to sit down with a good tax accountant so he/she can show you more details regarding *your* situation.