IRA deductions

[kelly_brooks]

If you made contributions to a traditional IRA for 2008, you may be able to take an IRA deduction, subject to certain conditions and up to a limit. But you or your spouse if filing a joint return must have had earned income to do so. For IRA purposes, earned income includes alimony and separate maintenance payments. If you were a member of the U.S. Armed Forces, earned income includes any nontaxable combat pay you received. If you were self-employed, earned income is generally your net earnings from self-employment if your personal services were a material income-producing factor.

[Alicejones247]

When it comes to your traditional IRA tax deductions, things are rather straightforward. You get full IRA
deductibility, assuming you or your spouse does not contribute to an employer sponsored retirement plan.
Things do, however, get a bit more involved when you or your spouse is an active participant in an
employer-sponsored plan. In order to qualify for the maximum IRA tax deduction, there are certain income
limits for both individuals and couples that actively partake in these plans. You can find more tax deductible
IRA information as it applies to covered employer plans from the IRS. The tables below cover the IRA
deductibility based on modified adjusted gross income, active-participant status, and tax year.