Income from self-employment that will support an IRA contribution, net earnings, is net profit minus the deductible portion of self-employment taxes. Deductible contributions to a self-employed retirement plan further reduce the amount available to support an IRA contribution. In other words, the amount that will support an IRA contribution is net profit minus the amounts on lines 15 and 16 of Schedule 1. The self-employed health insurance deduction on line 17 does not reduce available compensation.
A traditional IRA contribution may or may not be deductible depending on your modified AGI for the purpose, whether you or your spouse is covered by a workplace retirement plan and your filing status.
In your case, both spouses are eligible to contribute to a traditional or Roth IRA. The total compensation available to support these contributions is $48,250 - ($3,409 + $31,468) = $13,373, just enough to support the maximum $6,500 IRA contribution for each of you. If made to a traditional IRA, the contribution is eligible to be deducted on Schedule 1 line 20. (It would make no sense to choose to treat a traditional IRA contribution as nondeductible since it would be better to just make the contribution to a Roth IRA instead.)
