My wife and I are both retired; neither of us are currently covered by an employer retirement plan. I was covered while working; my wife has never been covered by an employer plan. Both my wife and I have earned income (W-2s). TTax says we can contribute to an IRA but it will not be deductible. I don't understand why it will not be deductible.
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The interview section of TurboTax should tell you why you are not eligible for a deduction.
If you both have earned income and do not participate in a Employer provided retirement plan you should be able to contribute and take a deduction for an IRA contribution.
If your MAGI (Modified Adjusted Gross Income) is $228,000 or more, you can't take a deduction for contributions to a traditional IRA. 2022 tax year: Fully deductible if your MAGI is less than $198,000; partially deductible if MAGI is between $198,000 and $208,000; not deductible if MAGI is over $208,000.
To find your MAGI, take your AGI (Line 11) and add back: Any deductions you took for IRA contributions and taxable Social Security payments. Deductions you took for student loan interest. Tuition and fees deduction.
If you are not over the MAGI limit:
Have you entered your W-2's properly? Is the earned income showing on your return?
Did you accidently answer that you had a retirement plan through your employment when you were going through the prompts?
Click here for additional information on IRA deduction limits.
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