Form 1040, line 10a is where you enter income adjustments from Schedule 1. This amount is subtracted from your total income to get your adjusted gross income (AGI). The total income is over 125,000 but when you subtract trad IRA contributions on line 10a the AGI is now under 125,000 so the trad IRA contributions (e.g. $7000) should be deducted from the total income to get an AGI of 118,000. IRS states the MAGI has to be 125+ before IRA contributions aren't allowed.
