If you made contributions to a Traditional IRA in 2025 and have earned income, you may be eligible to claim a deduction on your federal tax return. The deduction can help reduce your taxable income, even if you do not itemize.
Who Qualifies?
You must have taxable compensation, which includes:
- Wages, salaries, tips
- Net earnings from self-employment
- Alimony or separate maintenance payments (if taxable)
- Nontaxable combat pay (elective inclusion allowed)
Contribution Limits:
- Up to $7,000 for individuals under age 50
- Up to $8,000 for individuals age 50 or older (includes $1,000 catch-up)
Deduction Limits:
Your ability to deduct IRA contributions may be limited if:
- You or your spouse are covered by a retirement plan at work
- Your Modified Adjusted Gross Income (MAGI) exceeds IRS thresholds