Thank you dmertz for your quick advice.
I checked the 2024 deduction limit and realized that that's where $3420 came from.
My wife is not covered by workplace plan but I am.
So we only get a partial deduction of $3420 for the traditional IRA.
I now realize that's what Turbotax was telling me.
But as you said this doesn't matter as total taxable amount gets increased by the amount anyways and it won't change total taxable amount and I can move on without any action or correction.
Please let me know if I'm still mistaken.
