@macuser_22
Neither of those reasons are true for me. I doubled checked both. I'm definitely well aware of the MAGI limits.
I think this might be where the glitch is in TurboTax's system....it thinks my MAGI is too high because it is counting the IRA withdrawal.
I eventually get this screen:
Some of Your IRA Contribution Isn't Deductible
Traditional IRAs offer some great benefits, but they have restrictions too.
***** can't deduct contributions to a traditional IRA if ***** is covered by a retirement plan at work and your modified adjusted gross income (AGI) is more than $206,000.
Based on the information you've entered so far, ***** is covered by a retirement plan at work and your modified AGI is $214,561. You can't deduct *****'s $6,000 contribution.
However, our MAGI is definitely NOT $214,561. That number is inflated by adding in the entire Covid withdrawal. But Turbotax's system automatically adding that withdrawal to our income when it shouldn't.
