It is an Adjustment to income- which means for every dollar you contribute, your taxable income will be reduced. However, there are limits on the amount you can contribute.
If neither you nor your spouse was covered for any part of the year by an employer retirement plan, you can take a deduction for total contributions to one or more of your traditional IRAs of up to the lesser of: 6,000 ($7,000 if you are age 50 or older), or 100% of your compensation.
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