by 
The Curious Bag
-
Deductible IRA contributions are contributions that you make to your traditional IRA account. You can deduct these contributions from your taxable income.
Eligibility
You must be under age 70 1/2 and have taxable income equal to or greater than your IRA contribution to be eligible to make a deductible contribution to your traditional IRA.
Contribution Limits
The amount of deductible IRA contributions you can make is limited each year. For 2009 and 2010, the limit is $5,000 per person. If you are age 50 or older, you can contribute an additional $1,000.
Considerations
If you or your spouse are covered by a retirement plan at work, your contributions to your IRA may not be deductible if your adjusted gross income exceeds the limits based on your filing status.
Function
The deduction for traditional IRA contributions is an adjustment to income, also known as an above-the-line deduction, which means you can deduct the amount of your contribution in addition to taking the standard deduction.
Considerations
In order to claim the deduction, you must file your taxes using form 1040 or form 1040A. You cannot claim the deduction if you use form 1040 EZ.
Source:
RELATED QUESTIONS
Copyright 2023, Wired Ivy, LLC