I had 1 W2 for (Box 1/$61876). Wife had 2 (Box 1/$38453, Box 12a (DD) $18611 Box 12b (E) $2754, & (Box 1/$21747, Box 12a (D) $220. Total $122076. Can I still buy 2 IRAs?

We did have a total of $481, and a 1099 Misc to me of $3136, for a total of, $125,436, but we had $45523 in deductions. I reported 2 IRAs on for her, and 1 for me of $6500 each.  It took mine, and gave the deduction. On my wife's, it tells me that her 'Modified Adjusted Gross Income' is is $126214, and will not give the deduction. We did not make that much TOGETHER, much less her alone. I do not understand. First question, what is the rule on this? Second, if I am not going to get a deduction for her IRA, should I convert it a Roth IRA?