IRA Deduction Calculator
The contributions to an IRA are deductible. While most individuals are able to deduct all of their contributions, there are income thresholds that can limit the deduction that can be claimed.
The IRA deduction limits are adjusted every year and the income thresholds are different based on your filing status and whether or not you or your spouse is covered by a retirement plan at work if filing a joint return.
Depending on your income and whether or not you’re covered by a retirement plan at work, you can get:
- a full deduction up to the amount you contributed
- a partial deduction
- no deduction
As mentioned, the Internal Revenue Service updates the income limits for the deduction just like the contribution limits.
See IRA Contribution Limits 2023.
As someone with an IRA, you can deduct all of your contributions if your MAGI doesn’t exceed the following threshold. Take the IRA Deduction Calculator to see how much of your contributions are deductible.
Full Deduction Income Limits
Covered by retirement plan at work
- If you’re single or filing as head of household, your MAGI must be less than $66,000 if you’re covered by a retirement plan at work.
- If you’re married filing jointly or a qualifying widow(er), your MAGI must be less than $105,000 or less.
For married filing separately, the limit is $10,000. If the MAGI is more than $10,000, you get no deduction.
Not covered by retirement plan at work
- If you’re single, head of household, married filing jointly, or qualifying widow(er), you can deduct all of your contributions regardless of MAGI.
- If you’re married filing jointly but your spouse is covered by a retirement plan at work, your MAGI must be less than $198,000 for full deduction.
Partial Deduction Income Limits
Covered by retirement plan at work
- You get a partial deduction if you’re single or filing as head of household and your MAGI is more than $66,000 but less than $76,000. If MAGI is more than $76,000, you get no deduction.
- For married filing jointly and qualifying widow(er)s, the partial deduction is qualified for MAGI between $105,000 and $125,000. If MAGI is more than $125,000, IRA deduction phases out.
With married filing separately, the partial deduction is qualified for MAGI under $10,000.
