topic Traditional IRA, Spousal contribution in Deductions & credits

Traditional IRA, Spousal contribution

rl5088 — Wed, 10 Mar 2021 23:05:09 GMT

Husband retired; receives federal pension, also took a $10,000 distribution from his Roth-IRA in 2020. I am working - is my contribution into HIS Traditional-IRA deductible?

Re: Traditional IRA, Spousal contribution

MinhT1 — Wed, 10 Mar 2021 23:18:04 GMT

Yes, his spousal IRA contribution would be deductible if you have enough earned income.

Re: Traditional IRA, Spousal contribution

rl5088 — Wed, 10 Mar 2021 23:52:55 GMT

I can't get Turbo Tax to agree, lol. It adjusts the state refund (about $400 addition) - but makes no difference in the Federal refund...

What form/answer might be causing the issue?

Re: Traditional IRA, Spousal contribution

macuser_22 — Thu, 11 Mar 2021 00:03:51 GMT

The last screen in the IRA contribution interview should tell you the reason. Perhaps your joint MAGI is too high for a Federal deduction and the state limit is lower.

Enter IRA contributions here:
Federal Taxes,
Deductions & Credits,
I’ll choose what I work on (if that screen comes up),
Retirement & Investments,
Traditional & Roth IRA contribution.

OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "ira contributions" which will take you to the same place.

Re: Traditional IRA, Spousal contribution

rl5088 — Thu, 11 Mar 2021 00:37:22 GMT

The last screen says that "your IRA deductible contribution is $14,000.00." Our MAGI is WAY under 100,000...

Re: Traditional IRA, Spousal contribution

macuser_22 — Thu, 11 Mar 2021 00:50:00 GMT

@rl5088 wrote:

The last screen says that "your IRA deductible contribution is $14,000.00." Our MAGI is WAY under 100,000...

That is not possible. The maximum that can be contributed in 2020 is $6,000 ($7,000 of over age 50).

Look at the IRA Worksheet (IRA Deduction Worksheet) to see the calculations.

Re: Traditional IRA, Spousal contribution

rl5088 — Thu, 11 Mar 2021 01:07:09 GMT

As my initial question stated... my husband is retired, drawing pension, and received disbursement from his Roth.

I am working, contributed $7000 to his traditional IRA. (I also contributed the same to mine). We're both over 50.

Entering his contribution added no additional funds to our federal return, only state. Our MAGI is way below 100,000.

Last screen on turbo tax said we qualified for $14,000 contribution.

Re: Traditional IRA, Spousal contribution

macuser_22 — Thu, 11 Mar 2021 01:12:20 GMT

Okay the $14K is the total of both.

What does the IRA deduction worksheet show.

What is on the 1040 form schedule 1 line 19?

Re: Traditional IRA, Spousal contribution

Critter-3 — Thu, 11 Mar 2021 01:14:46 GMT

You may qualify to make the contribution however it may not affect your federal tax return ... look at the return with and without the contribution to see how and where it changes the figures.

Re: Traditional IRA, Spousal contribution

rl5088 — Thu, 11 Mar 2021 01:21:09 GMT

Line 19, Schedule 1: $14,000