The previous answer was somewhat helpful. Let me ask my specific situation. I have a job with a retirement program. Spouse is self-employed with SEP (no W-2 or 1099). Spouse has Sch C, I do not. When letting TT/Home Business maximize the contribution it calculates to exactly what I get by doing it on paper. BUT it says spouse is not eligible because MAGI is over the threshold. (If contribution is made it would be subject to 6% penalty every year.) Combined our incomes are over the threshold but spouse MAGI alone is not over threshold. Am I wrong in my thinking here?
