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posted Apr 15, 2025 4:49:22 AM

IRA Contribution Not Reducing Tax - Married Filing Joint

We are filing a joint return. I am covered by a retirement plan but my spouse is not. We are contributing $8,000 to his IRA but it is not allowing the full deduction.

His W-2 has no marks in Box 12 for retirement plans.

Any help would be appreciated.

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1 Best answer
Level 15
Apr 15, 2025 6:32:15 AM

Because you are covered by a retirement plan at work, the result in TurboTax implies that your MAGI for this purpose is above the $230,000 threshold where your spouse's traditional IRA contribution begins to become nondeductible, becoming fully nondeductible at $240,000 of MAGI.

1 Replies
Level 15
Apr 15, 2025 6:32:15 AM

Because you are covered by a retirement plan at work, the result in TurboTax implies that your MAGI for this purpose is above the $230,000 threshold where your spouse's traditional IRA contribution begins to become nondeductible, becoming fully nondeductible at $240,000 of MAGI.