Mr. and Mrs. Pointer each contributed $1,800 to their traditional IRAs. Each spouse actively participates in an employer-sponsored qualified retirement plan. Compute the deductible IRA contribution on their joint return if their AGI before such deduction is $108,970.

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For 2023, the IRA deduction phase-out range for married couples filing jointly, where both spouses are covered by a workplace retirement plan, is $116,000 to $136,000. Since their AGI is $108,970, which is below the phase-out range, they can deduct a portion of their contributions. The deductible amount is calculated based on the phase-out formula, resulting in a partial deduction of $1,085.

Mr and Mrs