Contributing to an IRA can make your retirement years more comfortable, but it can also reduce your tax bill for the year you contribute. To deduct your IRA contributions, you must have a traditional IRA instead of a Roth IRA. Additional restrictions apply based on your income and whether you or your spouse are eligible for a retirement plan through work.
Read on to learn the rules for deducting IRA contributions. We’ll cover when you can take the deduction, how much you can deduct, and some other factors to consider in your tax and retirement planning.
Some IRA contributions are tax deductible. If your IRA is a traditional IRA (funded with pre-tax money, but distributions are taxable). You can often deduct your IRA contributions. However, contributions to a Roth IRA (funded with after-tax money, but distributions are typically tax-free) are never tax deductible.
You can contribute to a traditional IRA as long as you earned money working during the year, no matter how much you earned. However, your eligibility to deduct contributions depends on your tax filing status, your income, and whether you have access to an employer-sponsored retirement account.
If you have a traditional IRA, you may be able to deduct the full amount you contributed up to the annual limit. Or you may only qualify for a reduced deduction or no deduction at all. (We’ll cover the rules in a moment.)
In 2025, you will be able to contribute up to $7,000 to an IRA, or $8,000 if you are age 50 or older. IRA contribution limits for 2026 will increase to $7,500 or $8,600 if you are at least 50 years old.
Below is a breakdown of the rules for deducting your IRA contributions based on your filing status and access to a workplace retirement account. Reminder: These rules only apply if you contributed to a traditional IRA, since contributions to a Roth IRA are not tax deductible. By “income,” we mean your modified adjusted gross income (MAGI).
Note that the IRS considers you (or your spouse) to be covered by a workplace retirement account if your employer offers a plan such as a 401(k), 403(b), or a pension, and someone made contributions to the account for the tax year. Contributions can come from you (or your spouse) or from the employer. However, if no one contributed to the account for the tax year, you are not covered by a work plan.
Read more: 403(b) vs. 401(k): What’s the difference?
If you are single, head of household, or a qualified widow(er) and do not have access to a workplace retirement plan, no income limits apply. You can deduct your entire traditional IRA contribution.
The following income limits apply if your filing status is single, head of household, or qualified widow(er) and you are covered by a workplace retirement account.
If you are married filing jointly and neither spouse is covered by a workplace retirement account, no income limits apply. Both you and your spouse can deduct your entire contribution.
If you are married filing separately and you or your spouse are covered by an employment plan, you may be eligible to partially deduct your IRA contribution, but only if your income is less than $10,000 in 2025 and 2026. No deduction is allowed in either year if your income exceeds this threshold. However, if neither you nor your spouse have a workplace account, you can deduct your IRA contribution regardless of your income.
Let’s say you’re 40 years old, single, and covered by a workplace retirement plan. Your modified adjusted gross income for 2025 is $85,000. For single taxpayers, the traditional IRA deduction phases out between $79,000 and $89,000.
Because your income is $6,000 above the low end of that elimination range ($85,000 – $79,000), you are already 60% of the way to elimination. That means 60% of your $7,000 ($4,200) contribution is not tax deductible, but the remaining $2,800 is.
Here is the formula:
Non-deductible portion
$7,000 × (85,000 − 79,000) / 10,000 = $4,200
Deductible portion
$7,000 − $4,200 = $2,800
You can deduct your IRA contribution even if you take the standard deduction instead of itemizing. This is because the IRA deduction is an above-the-line deduction (like the student loan interest deduction) and does not require you to itemize your return.
Most tax filing software will guide you through the process of claiming the deduction. Assuming you have verified your eligibility, you will file Schedule 1, Part II when you file Form 1040. Part II of Schedule 1 is used to report adjustments to income. You will report your total deduction on line 20 of the form.
Even when the tax year has ended, you still have until tax day to make contributions to the IRS for the year. In other words, you have until April 15, 2026 to make your 2025 IRA contributions.
How much of my IRA is tax deductible?
You may be able to deduct your entire IRA contribution (up to $7,000 in 2025 and $7,500 in 2026, or $8,000 and $8,600, respectively, if you’re age 50 or older). However, if you or your spouse are covered by a workplace retirement plan, your income comes into play. You may only be eligible for a partial deduction, or no deduction, if your income exceeds certain thresholds.
Are Roth IRA contributions tax deductible?
If you contributed to a Roth IRA, your contribution will not be tax deductible. You may not be able to deduct your traditional IRA contributions if your income exceeds certain thresholds and you and/or your spouse have a workplace retirement account.
Why contribute to a traditional IRA if it’s not deductible?
A traditional IRA still offers tax-deferred growth, even if your contribution is not deductible. However, if you don’t qualify for a deduction, you may want to consider alternative retirement savings vehicles first.
A Roth IRA may provide better tax benefits if your income does not exceed the annual limits. Although Roth IRA contributions are not deductible, your withdrawals in retirement are generally tax-free. You could also contribute more to your 401(k) or other employer-sponsored account. However, if you are not eligible for a Roth IRA and/or are already maxing out your workplace retirement plan, a nondeductible IRA still has some valuable tax benefits.
Read more: 401(k) vs. IRA: Which Account is Right for You?