I am having the same issue. I am retired and receiving a pension. I am working full time at a new job and I am not covered by a pension plan with the new employer. TurboTax will not allow the IRA deduction even though our combined income is well below the threshold. As a result, TurboTax is indicating that I owe a sizeable amount to the IRS rather than receiving a refund.
Per the TurboTax software: Limitations of the IRA deduction
- You can deduct all of your contribution if you (and your spouse, if filing a joint return) are not covered by a retirement plan at work.
This appears to be a bug in the software programming logic. Is there a fix for this being generated?
