topic IRA Deduction in Deductions & credits

IRA Deduction

CALiving — Sat, 27 Feb 2021 10:53:01 GMT

I am covered by a retirement plan, my spouse is not. My spouse will contribute to an existing IRA before 15 April 2021. TurboTax says the deduction is not possible because our combined AGI is >$142,000. From what I have read in the IRS instructions the limit for our situation is higher than $142,000. Is this an error in TurboTax?

Re: IRA Deduction

DanaB27 — Sat, 27 Feb 2021 13:39:47 GMT

Correct if your spouse is not covered by a retirement plan but you are then your spouse can deduct the full amount of the traditional IRA contribution as long as your modified Adjusted Gross Income (MAGI) is $196,000 or less. Please check your spouses W-2 box 13 if the Retirement Plan is checked or anything in box 12 indicates she has a retirement plan at work.

Please see IRA Deduction if You ARE Covered by a Retirement Plan at Work - 2020

and IRA Deduction if You Are NOT Covered by a Retirement Plan at Work - 2020 (deduction is limited only if your spouse IS covered by a retirement plan) for additional information.

Re: IRA Deduction

dmertz — Sat, 27 Feb 2021 14:17:42 GMT

Also make sure that in TurboTax you have not marked your W-2 as belonging to your spouse.