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:
- 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
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.
- 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.
- 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.