How much of my Traditional IRA contribution is deductible in 2023?

For any Traditional IRA deduction, you must have earned income. If you do, there are a couple of possibilities. If you (and/or your jointly-filing spouse) weren't covered by an employer-sponsored or self-employed retirement plan like a 401(k), your entire Traditional IRA contribution is deductible.

But if you (and/or your jointly-filing spouse) were covered by an employer-sponsored or self-employed retirement plan in 2023, the amount you can deduct depends on your tax filing status and modified adjusted gross income (MAGI).

If your MAGI is:

• Below the phase-out range, your entire contribution is deductible
• Above the phase-out range, you can't deduct anything
• Within the phase-out range, you can make a partial deduction (we'll calculate this for you)

Here are the MAGI phase-out ranges for tax year 2023 if you were covered by a retirement plan at work:

• Single, head of household, or married filing separately (not living with spouse): The phase-out range is $73,000 - $83,000
• Married filing jointly or qualified widow(er): The phase-out range is $116,000 - 136,000
• Married filing separately (living with spouse): The phase-out range is $0 – $10,000

If you weren't covered by another retirement plan at work, but your spouse was, and you're:

• Filing jointly: the phase-out range is $218,000 - $228,000
• Filing separately (living with spouse), the phase-out range is $0 – $10,000