Above the line IRA Contribution

[tax-usr-1235]

It appears TT is using the sum of both incomes and not allowing me to make an IRA/401k contribution.

Married filing joint & I have a retirement plan @ work; spouse is retired. 

My agi is < 101,000 and I want to contribute in a separate (new) account to reduce the tax bill. 

I've been unable to find a way to do that without running into the your magi is too high - which is it when incomes are combined. 

I appreciate your help.  Thank you.

[NCperson]

I do not see that if you are filing joint , you can carve off your income to calculate MAGI independent of your spouse’s MAGI

Why do you think that you are able to carve off your MAGI from your spouse’s when determining whether you can contribute to an IRA. Can you reference the IRS website or any other reputable website where this is!stated?

[IsabellaG]

TurboTax is handling your situation correctly.

For  Taxpayers filing Married, Filing Joint returns, your  Traditional IRA Deduction is phased out at a joint MAGI  between $101,000-$121,000 if you are both covered by an employer retirement plan.

For Single Taxpayers, that range is $63,000-$73,000. 

For Married, Filing Separate, the range is $0-$10,000.

On a joint return, if one spouse is covered by an employer plan but the other is not, the spouse not covered has a MAGI phase-out of $189,000-$199,000. 

For any of these categories, once your MAGI is over the phase-out range, no deduction is allowed.

[NCperson]

IsabellaG - while I understand the intent of your answer,  do any of your scenarios cover the question asked?  joint filing, only ONE has a retirement plan and HIS MAGI is less than $101,000.

For  Taxpayers filing Married, Filing Joint returns, your  Traditional IRA Deduction is phased out at a joint MAGI  between $101,000-$121,000 if you are both covered by an employer retirement plan.

Your response covers where BOTH have a retirement plan, but not where ONE has a retirement plan. 

would you please mind directly responding to the scenario posed

[IsabellaG]

If the spouse who is working is covered by a retirement plan, they are under the lower limits for a married couple filing a joint return: Traditional IRA Deduction is phased out at a joint MAGI  between $101,000-$121,000.

Only the spouse not covered by an employer plan can use the higher limitations. In the case of a retired spouse, they could contribute to a spousal ira  using the higher MAGI limits, but they would have to be under 70 1/2 years old. 

There are links provided here.

[macuser_22]

There are two possibilities, either you (meaning the taxpayer making the IRA contribution) is covered by a retirement plan or you are not covered (but if your spouse is covered then the deduction might be limited).

2018

• IRA Deduction if You ARE Covered by a Retirement Plan at Work - 2018
• IRA Deduction if You Are NOT Covered by a Retirement Plan at Work - 2018 (deduction is limited only if your spouse IS covered by a retirement plan)

See Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs), for additional information, including how to report your IRA contributions on your individual federal income tax return.

[NCperson]

check how your MAGI is being calculated - maybe there is a switch not flipped correctly? 

in the CD / download versions, there is a form called: 'earned inc wks' - it'll breakdown the income between your and your spouse's income

[dmertz]

If the IRA contribution is being subjected to the wrong individual's workplace retirement participation status, it suggests that you've allocated to the wrong individual the W-2 or self-employment income for the individual who participates in the retirement plan.  Edit the W-2 or self-employment income and make sure that the income is allocated to the correct individual.