Can you clarify if you computed your modified adjusted gross income or are you referring to your taxable income being less than $230,000? Taxable income isn't the test for IRA deductions, modified adjusted gross income (MAGI) must be less than $230,000. MAGI starts with AGI from 1040 line 11, before itemized or standard deduction. See: Worksheet 1-1. Figuring Your Modified AGI
