IRA Deduction Limits 2022

The Internal Revenue Service sets limits to the IRA contributions deduction based on a taxpayer’s modified adjusted gross income and whether or not they are covered by a retirement plan at work. The income limits are subject to change every year as with any other tax provision due to inflation and changes to the cost of living. The income limits for the deduction create a common ground between high-income beneficiaries and those that aren’t. 

For the 2022 tax season, you can get a full, partial, or no deduction for your IRA contributions. If your modified adjusted gross income is high but you’re not covered by a retirement plan at work, you will get to deduct all of your contributions. However, if you are and your MAGI is high, you might not get a full deduction and settle for a partial or no deduction at all. See the tables for the IRA contribution deduction limits for taxpayers that are both covered and not covered by a retirement plan at their workplace. 

Covered by a retirement plan at work

Filing StatusModified Adjusted Gross Income (MAGI)Deduction Eligible
Single$0 – $66,000
$66,001 – $76,000
$76,000 or higher
Full Deduction
Partial Deduction
No Deduction
Married Filing Separately$0 – $10,000
$10,000 or higher
Partial Deduction
No Deduction
Married Filing Jointly$0 – $105,000
$105,000 – $125,000
$125,000 or higher
Full Deduction
Partial Deduction
No Deduction
Head of Household$0 – $66,000
$66,001 – $76,000
$76,000 or higher
Full Deduction
Partial Deduction
No Deduction

Not covered by a retirement plan at work

Filing StatusModified Adjusted Gross Income (MAGI)Deduction Eligible
SingleAny AmountFull Deduction
Married Filing Separately$0 – $10,000
$10,000 or higher
Full Deduction
Married Filing Jointly (if spouse is covered by a retirement plan at work)$0 – $198,000
$198,000 – $208,000
$208,000 or higher
Full Deduction
Partial Deduction
No Deduction
Married Filing Jointly (if spouse isn’t covered by a retirement plan at work)Any AmountFull Deduction
Head of HouseholdAny AmountFull Deduction

Frequently Asked Questions about IRA deduction

I have both 401(k) and IRA, can I deduct IRA contributions?

Yes, it’s possible to deduct IRA contributions when you’re offered a 401(k) at work. Even if you’re not contributing any money towards your IRA, you are subject to the modified adjusted gross income limits. Take a look at the income thresholds based on your filing status and see how much you can deduct.

Do I have to itemize deductions to deduct IRA contributions?

You don’t necessarily need to itemize deductions to claim a deduction for your IRA contributions. The IRA deduction is classified as above-the-line deductions which are claimed on Schedule 1, not Schedule A, Itemized Deductions. You can take the standard deduction and claim the IRA deductions whether you itemize or not. Considering the increase in the standard deduction, it’s now a lot more attractive to most taxpayers to take the standard deduction and leave itemizing.

What tax form used for IRA deduction?

The IRA deduction is an above-the-line deduction, meaning you can claim the deduction even if you take the standard deduction, as menioned above. The appropriate form for claiming the IRA contributions is the Schedule 1, Additional Income and Adjustments to Income. This tax form is also used for figuring out adjusted gross income. The IRA deduction will lower your adjusted gross income, increassing the chances of qualifying for further deductions and credits.

How to attach Schedule 1 to 1040?

Schedule 1 is an attachment of Forms 1040, so you must attach it properly. Taxpayers filing a paper tax return can attach the document on the top right or left corner of 1040. For electronically filed returns, Schedule 1 is attached automatically, so you don’t necessarily need to do anything manually to attach tax forms. Every attachment and sorting of the documents are taken care of automatically by the tax preparation software.

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