IRA Contribution
Very basic question:
My client is filing a joint tax return with his wife. AGI is $156K, he has a pension plan but she does not. My understanding is that she can take a full IRA deduction since income is below $159K. is this correct ?
Thank you.
Permalink Submitted by Anonymous (not verified) on Wed, 2009-02-18 18:49
They must have earned income to make an IRA contribution. Are there W-2s or a Schedule C with a profit?
Permalink Submitted by Anonymous (not verified) on Thu, 2009-02-19 01:32
Or Alimony….
Permalink Submitted by Anonymous (not verified) on Thu, 2009-02-19 03:51
But if the earned income exists, she can deduct that contribution. It is MODIFIED AGI that must be under 159,000 for a full deduction.