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1099 MISC belongs to me , NOT my spouse

Forum|Forum|7 years ago
June 4, 2019
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I am a part time real estate agent and received two 1099 MISC forms, which I filed under the business section and marked that they apply to ME. My husband is a regular W-2 employee and has regular income.

When I tried to input our Traditional IRA contributions, it said my husband couldn't qualify for a pre-tax deduction because his income was over $118,000, when let's say in reality his income was $85,000 and mine was $40,000. We are filing jointly, so is that why? But his belongs to him and mine belongs to me.

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Best answer by Sneakypug

I answered my own question by looking at this website:

https://www.irs.gov/retirement-plans/ira-deduction-limits

https://www.irs.gov/retirement-plans/plan-participant-employee/2016-ira-contribution-and-deduction-l...

So, even though... let's say my husband made $85,000 and I made $40,000, since we are married filing jointly and our MAGI exceeds $118,000, his Traditional IRA is not deductible because he is covered by a retirement plan 401(k) at work. However, since I am self-employed and not covered, I can still contribute and it will be deductible because we are married filing jointly and our income is less then $184,000. This is for the 2016 tax year.

S

SneakypugAuthorAnswer

I answered my own question by looking at this website:

https://www.irs.gov/retirement-plans/ira-deduction-limits

https://www.irs.gov/retirement-plans/plan-participant-employee/2016-ira-contribution-and-deduction-l...

So, even though... let's say my husband made $85,000 and I made $40,000, since we are married filing jointly and our MAGI exceeds $118,000, his Traditional IRA is not deductible because he is covered by a retirement plan 401(k) at work. However, since I am self-employed and not covered, I can still contribute and it will be deductible because we are married filing jointly and our income is less then $184,000. This is for the 2016 tax year.