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If you are covered by a retirement plan from your employer, your deductions for the money you have put into that traditional IRA account is reduced if your modified annual gross income is:

• Greater than $89,000 or less than $109,000 if you’re a married couple filing a joint return or if you are a widow or widower
• Greater than $55,000 or less than $65,000 if you are filing as head of household or if you are filing as a single 
• Less than $10,000 if you are married but filing a separate return

Here’s how it works. If your modified annual gross income is greater than $166,000 but less than $176,000 then, your deduction is phased out. This applies to married people who live with their spouse or to married people who file a joint return and your spouse is covered by a retirement plan at work, but you are not covered by one. If you fall into this category then, you cannot take a deduction for contributions to a traditional IRA.

If your head is spinning and you want to run the numbers to see where you stand then, why not try the free traditional IRA calculator at Turbo Tax? It is so easy to use. The top of the home page has tabs you can click on to get to the calculator. It’s towards the right side of the tabs and it’s called tax calculators and tips. Just click through and now you will be at the calculators.

Turbo Tax has several different calculators to use. If you are looking for an answer to a question like, how much can I contribute to a traditional IRA, then you have come to the right place. Their software is easy to use and full of answers. It’s so simple, you just plug in your information and the calculator will run the numbers for you. In an instant you will have an answer.

I’m sure you have many more questions like:

• What exactly is a Traditional IRA?
• What is Compensation?
• Does that include Self-employment income?
• How about Self-employment loss?
• When can a Traditional IRA be set up?

If you are looking for more help or guidance:

You can find real-time online answers to your Traditional IRA Calculator questions from the Turbo Tax experts or other Turbo Tax users in the TurboTax Online Live Community.