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I am currently doing my 1040 for 2000 and have stumbled across a situation.

Last year I received income from my current employer and also delayed commissions from a previous employer (company B) that I worked for in 1999 (2 sets of W2's). I was not a participant in my current employers retirment plan in 2000 and was not an employee for company B in 2000, so I was not a participant in their plan either.

My W2 from company B checked the pension square in box 15 of the W2 form that was sent to me. When I enter this into the tax preperation software it calculates that I can have a $790 tax deductible IRA. If I leave the pension box unmarked (as I should be able to since I was not an actual participant)than the software calculates a full $2000 deduction.

I called my old employer and they stated that wether or not the pension box was checked on the W2, I should be able to have a complete deduction. If that is the case why would the tax program perform the calculation that it did?

Any thoughts would be greatly appreciated.

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