IRA Deduct: I read non-working spouse married to working spouse covered by retirement plan can deduct ira if filing jointly and magi<189K but turbo says 121K.Who's right?

[macuser_22]

The $120K is if YOU are covered by a retirement plan.

Be sure that the W-2 was entered for the correct spouse.
Be sure that the IRA contribution is for the correct spouse.

Sounds like something was entered incorrectly.

[ccastr50]

I know that I cannot deduct my ira because I work and am covered by a retirement paln but my non-working spouse who is not covered by a retirement plan and doesn't have a w2 should be able to if our magi is < 189K, correct?  If correct, how do I get online turbotax to allow this?

[dmertz]

The IRA deduction phase-out range for the an individual filing jointly who is covered by the workplace retirement plan is $101,000 to $121,000.  The IRA deduction phase-out range for that individual's spouse who is not covered by a workplace retirement plan (your spouse, in this case) is $189,000 to $199,000.

If your MAGI is under $189,000 yet TurboTax is indicating that your nonworking spouse is not eligible for a deduction for your spouse's IRA contribution, you've either indicated to TurboTax in some way that your spouse is the working spouse who is covered by a workplace retirement plan (perhaps by mistakenly associating your W-2 to your spouse), or you've mistakenly entered your spouse's IRA contribution as a contribution to your own IRA.

[ccastr50]

Thanks everyone.  It was user error.  TurboTax is allowing my wife ira to be deductible.

[macuser_22]

Solved by user.