IRA Deduction

If you made any nondeductible contributions to a traditional individual retirement arrangement (IRA) for 2025, you must report them on Form 8606.

You are entitled to a deduction for your contribution to a traditional IRA regardless of age.

If you made contributions to a traditional IRA for 2025, you may be able to take an IRA deduction. But you, or your spouse if filing a joint return, must have had earned income to do so. For IRA purposes, earned income includes alimony and separate maintenance payments reported on Schedule 1, line 2a. If you were a member of the U.S. Armed Forces, earned income includes any nontaxable combat pay you received. If you were self-employed, earned income is generally your net earnings from self-employment if your personal services were a material income-producing factor. For more details, see Pub. 590-A. A statement should be sent to you by June 1, 2026, that shows all contributions to your traditional IRA for 2025.

Use the IRA Deduction Worksheet to figure the amount, if any, of your IRA deduction. But read the following list before you fill in the worksheet.

You can’t deduct contributions to a Roth IRA. But you may be able to take the retirement savings contributions credit (saver’s credit). See the instructions for Schedule 3, line 4.

If you are filing a joint return and you or your spouse made contributions to both a traditional IRA and a Roth IRA for 2025, don’t use the IRA Deduction Worksheet in these instructions. Instead, see Pub. 590-A to figure the amount, if any, of your IRA deduction.

You can’t deduct elective deferrals to a 401(k) plan, 403(b) plan, section 457 plan, SIMPLE IRA plan, or the federal Thrift Savings Plan. Except for designated Roth contributions, these amounts aren’t included as income in box 1 of your Form W-2.

If you made contributions to your IRA in 2025 that you deducted for 2024, don’t include them in the worksheet.

If you received income from a nonqualified deferred compensation plan or nongovernmental section 457 plan that is included in box 1 of your Form W-2, or in box 1 of Form 1099-NEC, don’t include that income on line 8 of the worksheet. The income should be shown in (a) box 11 of your Form W-2, (b) box 12 of your Form W-2 with code Z, or (c) box 15 of Form 1099-MISC. If it isn’t, contact your employer or the payer for the amount of the income.

You must file a joint return to deduct contributions to your spouse’s IRA. Enter the total IRA deduction for you and your spouse on line 20.

Don’t include rollover contributions in figuring your deduction. Instead, see the instructions for Form 1040 or 1040-SR, lines 4a and 4b.

Don’t include trustees’ fees that were billed separately and paid by you for your IRA.

Don’t include any repayments of qualified reservist distributions. You can’t deduct them. For information on how to report these repayments, see Qualified reservist repayments in Pub. 590-A.

If the total of your IRA deduction on line 20 plus any nondeductible contributions to your traditional IRAs shown on Form 8606 is less than your total traditional IRA contributions for 2025, see Pub. 590-A for special rules.

Were You Covered by a Retirement Plan?

If you were covered by a retirement plan (qualified pension, profit-sharing (including 401(k)), annuity, SEP, SIMPLE, etc.) at work or through self-employment, your IRA deduction may be reduced or eliminated. But you can still make contributions to an IRA even if you can’t deduct them. In any case, the income earned on your IRA contributions isn’t taxed until it is paid to you.

The “Retirement plan” box in box 13 of your Form W-2 should be checked if you were covered by a plan at work even if you weren’t vested in the plan. You are also covered by a plan if you were self-employed and had a SEP, SIMPLE, or qualified retirement plan.

If you were covered by a retirement plan and you file Form 2555 or 8815, or you exclude employer-provided adoption benefits, see Pub. 590-A to figure the amount, if any, of your IRA deduction.