Can I Deduct My IRA Contributions?

Whether or not you can deduct a 2003 contribution to a regular Individual Retirement Account, and whether it will be fully deductible, depends on several factors:

  1. If unmarried, did you have wages, self-employment income or alimony of at least $3,000? (Or, if less, the amount you are planning to contribute to the IRA?)

    If married filing jointly, did you and your spouse together have wages, self-employment income or alimony that is no less than your combined IRA contributions (No more than $3,000 each, $6,000 in total)?

NOTE: REDUCE these limits, dollar for dollar, by any amounts contributed to a ROTH IRA for the same tax year.

  1. At the end of the year, were you under the age of 70 1/2?

IF #1 and #2 are both YES, go on to #3. If either is NO, you cannot make a contribution to an IRA for the tax year.

  1. Were you unmarried, an active participant in an employer pension plan for any part of the tax year AND your 2003 adjusted gross income is over $50,000.

    OR Were you married, filing jointly, an active participant in an employer pension plan for any part of the tax year, AND your 2003 adjusted gross income is over $70,000.

    OR Were you married filing jointly, NOT a participant in an employer pension plan for any part of the year (but your spouse was), AND your 2003 adjusted gross income is over $160,000?

IF the answer to the correct part of #3 is yes, your IRA deduction is NOT deductible. Use the worksheet in the Form 1040 instructions to calculate the deductible portion, and complete Form 8606 if any part will not be deductible.



(c) Copyright 1995-2015 by TaxLogic