TurboTax calculates that we (spouses) pay more federal tax by contributing to a traditional IRA that if we do no IRA. What's up?

[AndreaG · Accepted solution]

Although Traditional IRA contributions are tax deductible, if you or your spouse are also covered by an employer sponsored retirement plan, the amount of your deduction can be reduced or eliminated depending on your modified adjusted gross income and your filing status. Please refer to the following FAQ to determine how your circumstances might be impacting your ability to take this deduction. https://ttlc.intuit.com/replies/3301534

Additionally, as long as you are reporting any nondeductible IRA contributions on your tax return, you will NOT be taxed when these contributions are distributed.