Question

Married filing jointly: Wife doesn't have work retirement plan. Our AGI is $140K, but she can't get IRA deduction because I have a work retirement plan?

Forum|Forum|5 years ago
June 16, 2020
1 reply
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My W-2 has 401K contribution. Wife is 1099. Why is TurboTax insisting wife has work retirement plan? How do I fix this?

TurboTax Self Employed Online

Does your wife's Schedule C show net profit? She should be able to contribute as long as her Schedule C shows a net profit and not a loss.

Otherwise, she would only qualify for a "Spousal IRA" contribution. To make that contribution, the income guidelines used would be those for your income and your plan participation which make the contribution nondeductible. (Your modified adjusted gross income (MAGI) would need to be under $103,000 for a full deduction or between $103,000-$123,000 for a partial deduction.)

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