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matsushimas
New Member

In check stage of joint return (both 50s) the ira deduction is 13000 but in final it is reduced to 6500, increasing the pay by $1700. Which is correct 13k or 6.5K?

 
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DanielV01
Expert Alumni

In check stage of joint return (both 50s) the ira deduction is 13000 but in final it is reduced to 6500, increasing the pay by $1700. Which is correct 13k or 6.5K?

It depends.  The qualifier is if one spouse works, and has an employer-sponsored plan, there is an income level limitation on how much can be contributed to an IRA tax-deductible.  This FAQ discusses this:  https://ttlc.intuit.com/replies/3301534

You will notice that if you had above 119,000 of income, and you participated in an employer-sponsored retirement income, you cannot get a deduction for the IRA contribution.  However, your spouse may claim the full deduction on up to 186,000 of income if you participated in an employer sponsored plan but your spouse did not.  Thus, the 6,500 could be because you are somewhere in the middle of those income ranges.  (If you have less than 99K of income, however, the full IRA is deductible).

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DanielV01
Expert Alumni

In check stage of joint return (both 50s) the ira deduction is 13000 but in final it is reduced to 6500, increasing the pay by $1700. Which is correct 13k or 6.5K?

It depends.  The qualifier is if one spouse works, and has an employer-sponsored plan, there is an income level limitation on how much can be contributed to an IRA tax-deductible.  This FAQ discusses this:  https://ttlc.intuit.com/replies/3301534

You will notice that if you had above 119,000 of income, and you participated in an employer-sponsored retirement income, you cannot get a deduction for the IRA contribution.  However, your spouse may claim the full deduction on up to 186,000 of income if you participated in an employer sponsored plan but your spouse did not.  Thus, the 6,500 could be because you are somewhere in the middle of those income ranges.  (If you have less than 99K of income, however, the full IRA is deductible).

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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