For any Traditional IRA deduction, you must have earned income. If you do, there are a couple of possibilities. If you (and/or your jointly-filing spouse) didn’t contribute to an employer-sponsored or self-employed retirement plan like a 401(k), your entire Traditional IRA contribution is deductible.
But if you (and/or your jointly-filing spouse) did contribute to an employer-sponsored or self-employed retirement plan in 2018, the amount you can deduct will depend on your tax filing status and modified adjusted gross income (MAGI).
Note that if your MAGI is:
- Below the phase-out range—your entire contribution is deductible.
- Above the phase-out range—you can’t deduct anything.
- Within the phase-out range—you can make a partial deduction (we’ll calculate this for you).
Here are the MAGI phase-out ranges for tax year 2018 if you were covered by a retirement plan at work:
- Single, head of household, or married filing separately (not living with spouse): The phase-out range is $63,000 – $73,000
- Married filing jointly or qualified widow(er): The phase-out range is $101,000 – $121,000
- Married filing separately (living with spouse): The phase-out range is $0 – $9,999
If you weren't covered by another retirement plan at work, but your spouse was, and you're:
- Filing jointly, the phase-out range is $189,000 – $199,000
- Filing separately, the phase-out range is $0 – $9,999