IRA Deductions is zero instead of $7000. I have no retirement plan. How can I fix it?

There are limitations on how much can be deducted based upon:

 

• Your income (modified adjusted gross income), 
• Your filing status, and 
• Whether you are covered by a retirement plan (box 13 on your W-2).

The modified adjusted gross income tables are found on pages 13 and 14 of IRS Publication 590-A.

 

IRS Publication 590-A, page 9, states:

 

For 2024, the most that can be contributed to your traditional IRA is generally the smaller of the following amounts.

 

• $7,000 ($8,000 if you are age 50 or older). or 
• Your taxable compensation for the year.

This is a complex area of the tax code.  TurboTax will determine whether you qualify for a deductible contribution to a traditional IRA.

 

In TurboTax Premium Online, select Traditional and Roth IRA Contributions under Deductions & Credits.

The issue is with the software. It considers me covered for a retirement plan while I am not covered. How can I fix that I am not covered by a retirement plan?

TurboTax picks up "covered by retirement plan" from the box on your W-2.  Double-check that the W-2s for you (and your spouse, if applicable) do not have this box marked physically on the forms or in TurboTax entry screens.  This is located at Box 13.