IRA Deductible

Forum|Forum|11 months ago
April 11, 2025
1 reply
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Joint income is below $230k and I am not covered by a retirement plan - spouse is. But Turbotax says our income is too high to deduct IRA contributions. Is it a bug?

TurboTax Home & Biz Windows

MindyB

Can you clarify if you computed your modified adjusted gross income or are you referring to your taxable income being less than $230,000? Taxable income isn't the test for IRA deductions, modified adjusted gross income (MAGI) must be less than $230,000. MAGI starts with AGI from 1040 line 11, before itemized or standard deduction. See: Worksheet 1-1. Figuring Your Modified AGI

edb9Author

I discovered that a SEP-IRA contribution counts as a "retirement plan". I am able to defer the SEP-IRA contribution to next year, and I regained the IRA deduction.