I am considering contributing to a Traditional IRA to help offset my $2800 Fed and State Tax Bill. Is there a way to estimate in TurboTax if that would help reduce bill?

[tommyp123]

Married FJ, W2 $168K. I maxed work 401K. My wife was not eligible in 2016 because she started a new job and needed 6 mnths. Eligible MAR 2017.   According to phase-out for deductible contributions based on your joint income we fall below the ing jointly, the phase-out range is $184,001 – $193,999.  My tax rate is 28% now; it might be lower next year which I could then convert to Roth IRA with lower tax rate.  Sound this theory appear sound?

[macuser_22]

The $184K is the Roth contribution limit.

The Traditional IRA deduction phases out starting at $98K and is gone at $118K.

https://www.irs.gov/retirement-plans/plan-participant-employee/2016-ira-contribution-and-deduction-l...

[tommyp123]

the phase out according to your website and IRS if married filing jointly is $184,001 – $193,999.   This if your spouse was unable to contribute to a employer based 401K.  <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/replies/3301534">https://ttlc.intuit.com/replies/3301534</a>.  Please confirm this is correct and then if possible please review my question again.

[macuser_22]

That is the limit for a spouses contribution who is not covered by a retirement plan at work.  You said that your 401(k)  was maxed out so the $98K limit applies to you.    Your spouse, if not covered by a retirement plan at any time in 2016, might be able to deduct based on the spouses limit.

You can try and see what it would do.   Enter it as a contribution.  You can always return to the IRA contribution interview, un-check the Traditional IRA box and click on continue to delete the contribution.

Enter IRA contributions here:
Federal Taxes,
Deductions & Credits,
I’ll choose what I work on (if that screen comes up),
Retirement & Investments,
Traditional & Roth IRA contribution.

OR  Use the "Tools" menu  (if online version under My Account) and then "Search Topics" for "ira contributions" which will take you to the same place.