Thank you for sharing the tax data file. I have identified that the data about being covered by a plan at work is coming from information on the Keogh, SEP, SIMPLE Contribution worksheet which shows contributions made to a Traditional SEP for both taxpayer and spouse of $50,000 each.
This appears to be in error (unless the data for the self-employed income is just not yet complete). If it is in error, removing the form will resolve this issue.
To remove it, switch to the Forms mode by clicking on the forms icon across the top of your screen. Look for the Keogh/SEP Wks in the list of forms on the left and click Delete (or remove, for Mac).
After deleting, walk back through the interview questions in the section for your IRA contributions. This will then allow the deduction on your Traditional IRA contributions. You will then be asked if either you or your spouse are covered at work, and once you say no to that question you'll see the option to fully deduct your contributions.
If you are, in fact, making SEP contributions, then you won't be eligible to deduct traditional IRA contributions as SEP plans contributions are considered "covered at work".
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