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Wendy Reed
Wendy Reed, Enrolled Agent
Category: Tax
Satisfied Customers: 3346
Experience:  15+ years tax preparation and tax advice.
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Trying to determine whether my $6,000 IRA contributions are

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Trying to determine whether my $6,000 IRA contributions are deductable. Married, filing jointly. Received around $ 40,000 SS benefits. Wife had 401K at work but retired March 31, 2012. I do not have a retirement plan at work. Combined taxable income is around
$ 116,000. Thanks.

MyVirtualCPA :

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.

MyVirtualCPA :

How are you today?

Thank you for your question, and thanks for using Unfortunately, Joe - if your wife was covered by a retirement plan at work for even 1 day during the year your deduction to your IRA would be limited. The income limitation for married filing joint is between $92,000 and $112,000. Your income is over that limit, therefore you would not be able to have a deduction.

I'm truly sorry if this is not what you had hoped to hear. Had there been better news to report, I would have been thrilled to do so. Please don't shoot the messenger. Thanks again for using and ahve a great day.

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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:,-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.

Customer: replied 3 years ago.

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

Customer: replied 3 years ago.

Hi again, Wendy. Have you received my follow-up question?




Yes, I apologize for not getting back to you sooner..I actually ran the Boston Marathon today and there was much pandemonium.

I see what you mean.

The chart refers to whether you get a full or partial or no deduction. You will get a full deduction if your modified AGI is 173 or less.

The worksheet is to figure your partial (or no) deduction if your modified AGI is over 173K.

So basically, if your AGI is 173 K, full deduction. 173,001 or higher and you must do the worksheet to figure if you get a deduction.

I hope this makes sense to you and again I apologize for the delay.
Wendy Reed, Enrolled Agent
Category: Tax
Satisfied Customers: 3346
Experience: 15+ years tax preparation and tax advice.
Wendy Reed and other Tax Specialists are ready to help you
Customer: replied 3 years ago.

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.



You are very welcome.