• You may be eligible to deduct all or part of your IRA contribution.tax forms image by Chad McDermott from Fotolia.com
  
  A traditional IRA "allows individuals to direct pretax income, up to specific annual limits, toward investments that can grow tax-deferred," according to Investopedia.com. Contributions to a traditional IRA may be deductible, depending upon your tax filing status, modified adjusted gross income and whether or not you and/or your spouse participate in a retirement plan at work. IRS regulations are revised regularly; consult a tax professional to confirm deduction rules for the current tax year.
  
  

Active Participant Status Defined

• If you take advantage of a retirement plan at work, the IRS will consider you an "active participant." Participating in plans such as 401(k)s, SEP-IRAs, and SIMPLE IRAs may reduce or eliminate the amount of your allowable deduction for an IRA contribution.
  
  

Married Filing Jointly, Active Participants

• If you and your spouse are active participants and you file taxes jointly, " then your income...determines whether or not you are allowed to take a tax deduction for the contribution," according to Investopedia.com. In 2010, for example, if your combined adjusted gross income is $89,000 or less, you will be able to take the deduction. If your AGI falls between $89,000 and $109,000, the IRS says you are eligible for a partial deduction. If your income exceeds $109,000, you will lose your deduction eligibility.
  
  

Single, Active Participant

• For tax year 2010, if your filing status is "single," you participate in a retirement plan at work and you earn less than $56,000, you will be able to deduct the full amount of your IRA contribution. If you earn more than $56,000 but less than $66,000, you will be eligible to deduct part of your contribution. If you earn more than $66,000, you will not be able to take the deduction.
  
  

Married Filing Separately, Active Participant

• According to the IRS, if your filing status is married filing separately, and you or your spouse take part in a retirement plan at work, you will be able to take a partial deduction if you have an AGI of $10,000 or less. If your AGI is greater than $10,000, you will lose the deduction.
  
  

Nonactive Participant, Single or Married

• If your filing status is "single" and you do not participate in a retirement plan at work, you will be able to deduct the full amount of your traditional IRA contribution. Similarly, if you are married and neither you nor your spouse participates in an employer-sponsored plan, you will be able to deduct your contribution in full. This is true whether you file jointly or singly.
  
  

Married Filing Jointly With One Active Participant

• Finally, for tax year 2010, if you are not covered by an employer-sponsored plan, but your spouse is an active participant, the IRS says you can deduct the full amount of your IRA contribution, as long as your modified AGI is $167,000 or less. If the AGI figure on your joint tax return is between $167,000 and $177,000, you will be able to deduct part of your contribution. If the AGI figure is $177,000 or more, you will not be eligible for the deduction.