IRA deduction limit for married filling separartly and did not live together

[cedwards479]

Hi, 

I am filing MFS and my spouse and I did not live together at any pojnt during the year. Turbo tax is automatically setting the MAGI to 10K although it should be 74K. How can I change this?

Regards!

[DianeC958]

When you are filing as Married Filing Separate there are many credits and limits that are lower.  One of these limits is the income amount for being able to deduct a contribution to an IRA.

Married Filing Separate the phase-out for being able to deduct an IRA contribution begins at $0 and ends at $10,000.  Once you have $10,000 of income you are no longer able to deduct a contribution to an IRA account.

Link to Table on IRS web site about IRS Deduction Limits

[cedwards479]

if you see at the bottom of the table in the link "If you file separately and did not live with your spouse at any time during the year, your IRA deduction is determined under the "Single" filing status."

I'd be happy if you have a solution to my question! Thanks!

[DianeC958]

Yes, that is correct.  Since you did not live with your spouse all year you can file as Single instead of Married Filing Separate and the income limit for a contribution to an IRA will change according to your filing status.

Tax Tips for Separated Couples

[dmertz]

Revisit the Personal Information section and make sure that you have indicated that you are married filing separately, mark the box indicating that you did not live with your spouse between July 1, 2019 and December 31, 2019, then mark the box indicating that you didn't live with your spouse at all in 2019.  When you have made these entries TurboTax will automatically apply the Single limit.