Thank you for the information – I continued to do research as our Modified AGI is a little over the 129,000 as you noted and the Turbo Tax was still allowing us to make a contribution to my IRA and get a deduction. I found the following information on the Turbo Tax Learn More section and the IRS website. Below are just snippets of what I found.
The Turbo Tax Learn More said –
Eligibility Requirements – you or your spouse, if filing a joint return, must have earned income, such as wage, salary, or self employment earnings.
Limitations of the IRA contribution – You can contribute a max 6,000 or 7,000 if age 50 or older. If you’re married filing jointly you can each contribute the maximum, even if only one of you works, as long as your combined compensation is at least 12,000- 13,000 if only one of you is age 50 or older and 14,000 if both of you are.
Limitation of the IRA deduction – If you or your spouse, if filing joint return and are covered by a retirement plan at work, you might be able to deduct all of your contribution, only part of it, or none of it, depending on your modified adjusted gross income (MAGI) and your filing status.
If you are not covered by a retirement plan at work but your spouse is, here are the income limits:
If you are married filing jointly: You can deduct all of your IRA contribution if your modified adjusted gross income (MAGI) is 204,000 or less.
Here what the IRS website said
2022 IRA contribution and deduction limits effect of Modified AGI on Deductible Contribution if you are NOT covered by a Retirement Plan at Work. I found - If your filing status is – “Married filing jointly with a spouse who is covered by a plan at work” and your Modified AGI is “204,000 or less” – Then you can take “a full deduction up to the amount of your contribution limit”.
Again thank you for information you provided which made me dig deeper trying to understand so that I would understand it.
