I do not contribute to my companies 401k plan and wondering if I can deduct my traditional IRA on my return? Am i still "covered" if I dont elect to contribute?

[TeresaM]

Yes, you should still be able to contribute to your traditional IRA even if you decline to participate in a 401-k plan at work, depending on your adjusted gross income (AGI) and your filing status.

This is what the IRS says about the limitations:

Modified AGI limit for traditional IRA contributions. For 2021, if you are covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is:

• More than $105,000 but less than $125,000 for a married couple filing a joint return or a qualifying widow(er),

• More than $66,000 but less than $76,000 for a single individual or head of household, or

• Less than $10,000 for a married individual filing a separate return.

For more additional information, please click this link to see the IRS site for  2021 IRA Deduction limitations 
@arhaley2013

[Edited 1/3/2022|2:36 pm PST to update AGI from 2020 to 2021]

[Opus 17]

You are considered "covered" if any money was set aside into the retirement plan for your benefit.  If the company made contributions for you, you are covered even if you did not add any additional funds from your own paycheck.  But if you did not contribute and your employer did not contribute for you, then you were not "covered" even though the plan was available to you.

You will need to look at your W-2 box 13, which is what the IRS looks at.  If box 13 "covered" is checked, but you think you are not covered, you will need to contact your payroll office and get a corrected W-2 (or an explanation). 

[fanfare]

it also depend on your AGI.

at a certain range of income your IRA contribution is deductible even if w-2 says "retirement plan".