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Turbo tax is allowing my wife to deduct her IRA contribution, but I can't deduct mine because our MAGI is over $121,000. Please help.

Forum|Forum|7 years ago
June 1, 2019
1 reply
26 views

I want to deduct my IRA contribution. I am covered by a retirement plan at work, but my wife isn't. We are married filing jointly. Our MAGI is $122,307. The Turbo Tax instructions say, "If you are not covered by a retirement plan at work but your spouse is you can deduct all of your IRA contribution if your MAGI is $189,000 or less". However, Turbo tax is allowing my wife to deduct her IRA contribution, but I can't deduct mine because our MAGI is over $121,000. Please help.

TurboTax Deluxe Windows

Best answer by DanaB27

Your spouse is able to deduct the IRA contribution because for her the MAGI $189,000 or less applies. For you, since you are covered by a retirement plan at work, the MAGI $101,000 or less applies a full deduction. With a MAGI $121,000 or more there is no deduction.

Please see

IRA Deduction if You ARE Covered by a Retirement Plan at Work - 2018
IRA Deduction if You Are NOT Covered by a Retirement Plan at Work - 2018 (deduction is limited only if your spouse IS covered by a retirement plan) limits apply in her case

Please keep track of any nondeductible contributions to be able to track the basis you have in the traditional IRA.

Employee Tax Expert

Answer

Employee Tax Expert

Your spouse is able to deduct the IRA contribution because for her the MAGI $189,000 or less applies. For you, since you are covered by a retirement plan at work, the MAGI $101,000 or less applies a full deduction. With a MAGI $121,000 or more there is no deduction.

Please see

IRA Deduction if You ARE Covered by a Retirement Plan at Work - 2018
IRA Deduction if You Are NOT Covered by a Retirement Plan at Work - 2018 (deduction is limited only if your spouse IS covered by a retirement plan) limits apply in her case

Please keep track of any nondeductible contributions to be able to track the basis you have in the traditional IRA.

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