Turbo tax is saying we both me and my wife can contribute $6500 into ourt IRA's to reduce our liability. I want to be sure I am not contributing more than is allowed.
The amounts you deferred from your paycheck to your Employer's Retirement Plans doesn't count toward your "personal" IRA contributions that you make directly.
Whether or not you or your spouse can make a Deductible IRA Contribution depends on your joint Modified Adjusted Gross Income (MAGI) and whether or not you and/or your spouse are "covered" by an Employer-Sponsored Retirement Plan (Retirement Plan Box Checked on Line 13 of your Form W2).
You have indicated that you are covered by a plan, but If your spouse is not covered by an Employer Sponsored Retirement Plan, the ability for her to make a Deductible IRA Contribution phases out when your joint MAGI is between $189,001-$199,000.
If you are both covered by an Employer Sponsored Retirement Plan, the ability to make a Deductible Traditional IRA contribution phases out when your MAGI (Modified Adjusted Gross Income) is between $101,000 and $121,000.
When Married Filing Joint, your ability to make ROTH IRA Contributions, which are not tax deductible, phases out when your MAGI is between $189,000 and $199,000.
If qualified, you can contribute up to $5,500 ($6,500 if over age 50) for Tax Year 2018 by 4/15/2019.
You can check out this IRS link for more about these limitations: IRA Limits.
For additional details, you check out the TurboTax FAQ below: https://ttlc.intuit.com/replies/3301534