IRA Income Limitations
You can deduct contributions you make throughout the year to a traditional or Roth IRA on your state and federal income taxes. The amount of the deduction the IRS allows you to take for IRA contributions begins to phase out once your adjusted gross income, or AGI, reaches a certain level.
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Married Filing Jointly and Qualifying Widow(er) Status
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If your spouse dies, the IRS considers you a qualifying widow or widower. In this situation, the IRA income limitation for deductions for a Roth IRA is $176,000 and $109,000 for a traditional IRA, as of 2010. Once you reach those income limits, the deduction begins to phase out. These same income limitations apply to those who file their taxes as married filing jointly.
Head of Household and Single Tax Filers
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If you file your taxes as head of household, single, or married but filing separately, then the IRA income limitations for deductions on your Roth IRA is $120,000 and $65,000 for a traditional IRA, as of 2010. These limitations are the same if you are still married, but separated from your spouse, as long as the two of you did not live together during the year.
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Married Filing Separately Tax Status
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If you are a married filing separately tax filer, the IRA income limitations for deductions on Roth IRAs is $10,000, as of 2010, if you and your spouse cohabited at any time during the year. The income limitation is the same for traditional IRAs regardless of whether you lived with your spouse during the tax year.
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References
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