IRA Deduction with MAGI over $143,000

[fepeter]

I am self employed. My wife is fully retired. Our Modified Adjusted Grose Income (MAGI) is over $143,000 but under $230,000. My wife has made a $7000 contribution to her traditional IRA. She is not working and has no retirement coverage at work. I plan to make a separate contribution to my IRA or SEP whichever is most advantageous.

TurboTax is flagging my wife's $7000 as an excess contribution and non-deductible.

How can I tell TurboTax that my wife does not have a retirement plan at work?

[RobertB4444]

What your wife has is known as a spousal IRA.  She can continue to contribute to it as long as you have sufficient earned income from your self-employed business to support the deduction.  

When entering the contribution into the system it asks all sorts of questions about the IRA contribution.  One of those is "Were you covered by a retirement plan at work?".  Go back through the IRA contribution section and make sure that you have checked 'No' on that question.

@fepeter 

[fepeter]

RobertB4444:

Evidently, the first time I was answering questions, I must have asked that question and I evidently clicked "yes" by mistake. Thereafter, the program never let me change my answer. Only after I deleted the Form: "IRA Contrib Wks" would it ask that question again. And now my wife's IRA contribution is acceptable to TurboTax.

Thanks.