Turbotax is stating our MAGI is too high to deduct IRA contributions. saying its over the 125K. We are married filing joint. Isn't the MAGI limit higher?

It depends on whether you covered by a retirement plan at work. According to the IRS,:

• You can take a full deduction if combined income is $105,000 or less.
• $105-$125K, a partial deductions 
• $125K or more, no deduction.

If not covered by a retirement plan,

• You can take a full deduction if combined income is $198,000 or less.
• $198-$208K, a partial deductions 
• $208K or more, no deduction

if you aren't covered by a retirement plan, you may have selected that you were and this may prevent you from claiming the contributions.

If you do not contribute to your 401k (retirement plan) thru work for the whole tax year, should you still get full credit for an IRA contribution.  Thank you,

Yes, if you (and your spouse if you are married) don't have a retirement plan at work then you should get the full deduction on Schedule 1 line 20 for your traditional IRA contribution.

Please see IRA deduction limits for details.