Have a Tax Question? Ask a Tax Expert
Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
How are you today?
Thank you so much for allowing me to help you with your questions. I have done my best to provide information which will be helpful to you. If I have not fully addressed your questions or if you have any follow up questions, or if I have misinterpreted your questions in any way, please do not rate me yet, but simply ask a follow up question without rating so I can provide you with a fully satisfactory answer. If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service with 3, 4, or 5 faces/stars so I can receive credit for helping you today. I thank you in advance for taking the time to provide me a positive rating!
Hello there,Different Expert here.
I do not wish to create confusion for you, but I have information that is beneficial to you.For tax year 2012, there is a range of income where the IRA deduction phases out for a person married filing jointly, BUT---the range is different depending on whether the taxpayer or the spouse is covered by a retirement plan. If you were covered, the range would be 92-112 K.
However, this is not the case, you are not covered, your wife is (or was during the year), so a different chart must be used to examine the income limitation. A full deduction is allowed for you unless your modified adjusted gross income is greater than 173K.
Here is the chart you can view for verification of my answer: http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/2012-IRA-Contribution-and-Deduction-Limits---Effect-of-Modified-AGI-on-Deductible-Contributions-if-You-are-NOT-Covered-by-a-Retirement-Plan-at-Work
Please let me know if I can help you further, or clarify this matter further for you.
Thanks Wendy, I hope you're correct. However, the chart I looked at from IRS Pub 590, Worksheet 2, says "modified AGI 'over' $173K," while your chart says "modified AGI of $173K or less." Very different. How can that be? JoeMc
Hi again, Wendy. Have you received my follow-up question?
Thanks Wendy. You saved me considerable money and I gave you very high marks on the general web site fed back.
I am very glad to hear you made it home from the Boston marathan safely.
Next time I have a question you'll be my first source.