When you file as a couple, and your spouse is covered by a retirement plan at work and you aren't, with a MAGI of less than $218,000, you are allowed a full deduction of your IRA contribution (up to $7,500 if you are 50 or over).
See this IRS document.
But the IRA deduction is a tax deduction, it reduces your taxable income, but doesn't reduce your tax liability dollar for dollar.
Looks like your marginal rate of taxation is 24%, and the $7,500 deduction reduces your taxes by $7,500 x 24% = $1,800.
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