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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: 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.