Hi, I am trying to enter that I invested 5500 into a traditional ira account for the year 2016 and I am trying to claim the deduction for it.

[noah_barker]

The software assumes I fall under the 71,000 limit for traditional IRa deductions, but this assumes that I am covered by a retirement plan at work. I am not and from my understanding I should be able to claim the full deduction regardless off my MAGI. Please explain how I should enter the info to get the deduction. Thanks.

[AndreaG · Accepted solution]

If you have any Form W-2s for 2016 and the "retirement plan" box is checked in box 13, this means that you are covered by an employer sponsored retirement plan.

However, if  NO contributions were made to an employer sponsored retirement plan by either the employer or by you for the 2016 plan year, then you are NOT covered by a plan for the 2016 plan year, so your ability to take a full deduction for your Traditional IRA contributions would not be affected.

If the "retirement plan" box on the W-2 is checked but no contributions were made on your behalf for the plan year, then you would need to talk to your employer to clarify the situation and get a new W-2 issued.

If you dont have any Form W-2s for 2016 but are self employed and have a SEP then you are covered by an employer sponsored retirement plan. 

Please refer to the following IRS information page for additional clarification about employer sponsored retirement plans. https://www.irs.gov/retirement-plans/are-you-covered-by-an-employers-retirement-plan