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February 13, 2023
Question

TurboTax has the TY2022 IRA Deduction Rule Wrong

  • February 13, 2023
  • 1 reply
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TurboTax disallowed my 7k IRA deduction saying that I work and make over 129k when married filing jointly.  WRONG.  The limit is 204k for marrieds filing jointly.  How do we get this fixed?

1 reply

February 13, 2023

The $204,000 applies if you are married and your spouse is covered by a retirement plan at work and you aren’t, and you live with your spouse or file a joint return.  

 

For 2022, if you are covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is:

  • More than $109,000 but less than $129,000 for a married couple filing a joint return or a qualifying widow(er),
  • More than $68,000 but less than $78,000 for a single individual or head of household, or
  • Less than $10,000 for a married individual filing a separate return.