I am unable to replicate this behavior. With MAGI below the $246,000 threshold, at least some of the IRA contribution made by the spouse who is not covered by a workplace retirement plan is shown as deductible on Schedule 1. (I'm assuming that Wife has sufficient compensation to support Husband's spousal contribution such that it is not an excess contribution. Excess contributions are not deductible.)
I suggest reviewing TurboTax's IRA Contributions Worksheet line 10 to see who TurboTax believes is covered by a workplace retirement plan, particularly Husband. In fact, review all of TurboTax's Additional Traditional IRA Contribution Information on this worksheet. Also review line 21 of either the IRA Deduction Worksheet or the Social Security Recipients Who Contribute to a Traditional IRA Worksheet, whichever one is being used to calculate your MAGI for this purpose.
