TT telling me "IRA Contribution not permitted" for spouse on married filing joint return

[denniskal]

TT is telling me "IRA Contribution not permitted" for my spouse on our married filing jointly return.  I believe this is in error.  Our joint taxable compensation exceeds the limit of 2 max traditional IRA contributions ($7000 each since over 50).  We have not taken any IRA distributions.  We have not exceeded any IRA contribution limits in the past.  

Per the IRS website: "If you file a joint return and have taxable compensation, you and your spouse can both contribute to your own separate IRAs. Your total contributions to both your IRA and your spouse's IRA may not exceed your joint taxable income or the annual contribution limit on IRAs times two, whichever is less. It doesn't matter which spouse earned the income."  

Do you agree that this is in error and how do I fix it so that I can file?  

[AmyC]

Let's double check the rules and facts.

Do you mean contribution? You need to verify your taxable compensation is eligible along with the exceptions to the rule.

The general limit for 2021, the most that can be contributed to your traditional IRA is generally the smaller of the following amounts.

• $6,000 ($7,000 if you are age 50 or older).

• Your taxable compensation  for the year.

See Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs),

Do you mean IRA deduction? You both work. Are either or both of you covered by an employer retirement plan?

• If both not covered, you can contribute to your IRAs.
• If both covered, you have income limitation, for 2021, MFJ, the phaseout range is $105,000-125,000. Above that, no contribution allowed.
• If one covered by retirement plan but not the other, the MFJ phaseout range is $198,000-208,000. Above that, no contribution allowed.

If there is still an issue after verifying the above, you can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions: 

If you are online, go to tax tools>tools > share file with agent > 6 digit number pops up.

If on desktop, go to online >send tax file to agent > number pops.

Reply with # here and @AmyC please