My 2020 AGI is $163,000, my wife and I are filing jointly. I have a company sponsored 401k retirement. My wife had no reported income for 2020. Can I open an IRA account in her name and contribute the max $7000.00 and then claim the $7000.00 on my 2020 tax return to achieve a lower AGI and net a larger tax return? Turbo Tax allows me to do this but my investment firm says not allowable due to the fact that my wife had no earned income for 2020.
The investment firm rep is incorrect. Your wife can make a spousal IRA contribution based on your compensation since she has lower ($0) compensation than you and you are filing a joint tax return.
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