Issue in Traditional IRA deduction calculation when filed jointly and one of the spouses not covered by a retirement plan

Forum|Forum|3 years ago
April 17, 2023
1 reply
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Hello,

I am filing jointly with my spouse, and I am covered by my employer retirement plan but not my spouse. In deductions & Credits for IRA contributions, tax system is considering both are retirement plan covered (i.e considering modified AGI limit of $109K limit not $204K)

Can you please clarify what could be the reason and fix? Thanks.

Link:

Publication 590-A (2022), Contributions to Individual Retirement Arrangements (IRAs) | Internal Revenue Service (irs.gov)

Modified AGI limit for certain married individuals.

If you are married and your spouse is covered by a retirement plan at work and you aren’t, and you live with your spouse or file a joint return, your deduction is phased out if your modified AGI is more than $204,000 (up from $198,000 for 2021) but less than $214,000 (up from $208,000 for 2021). If your modified AGI is $214,000 or more, you can’t take a deduction for contributions to a traditional IRA.

TurboTax Deluxe Online

AvatharAuthor

Level 2

I am using Deluxe product online version.

AvatharAuthor

Level 2

My spouse does not have any W-2 Form.

DanaB27

Level 15

If your wife doesn't have a W-2 she should have been asked if she was covered by a retirement plan at work during the IRA contribution interview. Make sure that you answered "No"

Please see Are You Covered by an Employer's Retirement Plan? for additional information.

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