topic IRA Deduction in Deductions & credits

IRA Deduction

DoIA — Mon, 23 Feb 2026 12:19:44 GMT

My wife and I are over 50, have an adjusted gross income of 98K. Turbotax reduced our 2 X 7K IRA contributions to 13,120 (Schedule 1). Is this correct?

Re: IRA Deduction

AnnetteB6 — Fri, 17 Feb 2023 13:25:55 GMT

It may be correct, but there is not enough information provided to determine that with certainty.

There is a phase-out range for deductible Traditional IRA contributions based on a Modified Adjusted Gross Income (MAGI), your filing status, and whether or not you and/or your spouse are covered by a retirement plan at work. As you go through TurboTax and enter your IRA contributions, there should be some information on the screen that will tell you whether you are qualified to deduct the full amount of your contribution, or if it is being limited.

Even if some of the contribution is not able to be deducted on your return, you can still make the full contribution to the IRA accounts. You will need to keep track of how much is deducted and how much is a non-deductible contribution. This is important when you begin to take distributions from the account.

To learn more take a look at the following TurboTax help article:

How much of my Traditional IRA contribution is deductible in 2022?

Also, use the following link to see the IRS worksheet for determining the MAGI for Traditional IRA contributions.

Re: IRA Deduction

DoIA — Fri, 17 Feb 2023 13:45:21 GMT

Thank you for your reply.

We are filing jointly, I am covered by a retirement plan at work, and our MAGI is under 98K. I believe the phase-out range for IRA deductions starts at 109K, so I believe I should be able to use the full 7K IRA deduction for both me and my wife. I didn't notice any messages on screen as I entered the information on TurboTax, but perhaps I missed it.

Re: IRA Deduction

AnnetteB6 — Fri, 17 Feb 2023 14:13:34 GMT

If you are using a CD/downloaded version of TurboTax, there is a form called IRA Deduction Worksheet that shows how the deductible IRA contribution was calculated. You can access it using Forms Mode by clicking Forms in the upper right corner of your screen and then finding the worksheet in the list on the left side.

If you are using TurboTax Online, you should be able to print/preview that same IRA Deduction Worksheet after the TurboTax fee has been paid.

@DoIA

Re: IRA Deduction

DoIA — Fri, 17 Feb 2023 14:25:39 GMT

Thank you. I have found my mistake. My MAGI is higher than I thought. The TurboTax calculation is correct.

Re: IRA Deduction

lmatax1 — Mon, 03 Apr 2023 15:36:46 GMT

I was not covered by a retirement plan at work, but have some schedule C income. Turbotax has disallowed my IRA contribution due to excess income. But that limit should not apply if I've not covered by a plan at work.

Re: IRA Deduction

lmatax1 — Mon, 03 Apr 2023 15:38:52 GMT

Turbotax is reducing my IRA contribution for excess income even though I was not covered by a plan at work. I had some Schedule C income.

Re: IRA Deduction

RobertB4444 — Mon, 03 Apr 2023 16:42:12 GMT

If you are married and your spouse is covered by a plan at work then your deduction is limited if your joint income is more than $204,000. At $214,000 the deduction is zero.

You would still qualify for a SEP plan if you have schedule C income. You can contribute up to 20% of the company's net income.

@lmatax1