IRA contributions using step-by-step method gives incorrect results

[Gajamukh]

Hello.

Under "Other Tax Situations", there is the IRA Calculator tool. When I tried to use it to find how much I could contribute to save on taxes, the series of questions TurboTax asked after my entries ended with TT saying I am "not qualified for deducting the contributions for saving on taxes'!! The calculator said I could contribute and even showed a tax savings! But the following steps failed. My case is filing a joint return with $8000 earned income. According to IRS, I am not limited by MAGI to contribute to traditional IRA and it is deductible up to $8000. So when TT says I am not qualified?  

If I enter the number in the actual forms (IRA Worksheets), it comes out right and I am fully qualified and I got all the expected tax savings. So there is a disconnect between the forms section and the interactive sections. Please correct the problem. Thanks.

 Gajamukh