IRA Contributions

[spinfam]

My question is if I can contribute up to $15,000 (for two of us), why does it only reduce our taxable income by $7,500?

[VolvoGirl]

Are you entering each  7,500 contribution under the right spouse?  Not 15,000 for one spouse.  Do you have enough earned income to qualify to make the full contributions?  

[spinfam]

We have enough income but my wife has a retirement plan through her employer and I think that might be the fly in the ointment here.

[dmertz]

If your wife's traditional IRA contribution is nondeductible, it will be reported on line 1 of her Form 8606 which must be included in your tax return.