Turbotax says my income is too high to deduct an IRA contribution even though MAGI is below the limit specified in the IRS publication. Why?

[svjeanmarie]

I do not currently participate in a 401-k plan although my wife does.  The IRS publication for IRA deduction limits for this case can be found here:

https://www.irs.gov/retirement-plans/2017-ira-deduction-limits-effect-of-modified-agi-on-deduction-i...

This publication states that if I am "married filing jointly with a spouse who is covered by a plan at work" then the MAGI limit for a full deduction is $186,000.  However, Turbotax is telling me that I cannot deduct my contribution if my MAGI is over $119,000.

What am I missing?

[AnnetteB]

The MAGI limit of $119,000 indicates that both you and your spouse are covered by a retirement plan at work.

You commented that you do not currently participate in a 401k plan.  However, if you participated at any time during 2017 or if any of your W-2s indicate “retirement plan”, then you are considered to be covered by a retirement plan for the purposes of determining your deductible contribution. 

Double check your W-2 entries to see if that is what is causing the lower limit to be imposed.