Can I deduct traditional IRA contributions for my non-working spouse if our household MAGI is under 50k?

Yes, you absolutely can make deductible traditional IRA contributions for your non-working spouse! This is specifically what the spousal IRA provision is designed for. Since you file jointly and your MAGI is under $50k, both you and your non-working spouse can each contribute up to $7,000 for 2025 (or $8,000 if either of you are age 50+) to your respective traditional IRAs and deduct the full amount. The IRS considers your earned income as qualifying for both of you when you file jointly. The key requirements are: 1) You must file a joint tax return, 2) You must have taxable compensation (which you do), and 3) Your earned income must be equal to or greater than the total contributions made to both IRAs. With your $47k income, you could potentially contribute the maximum to both IRAs.

After struggling with this exact situation last year, I found an amazing resource that cleared everything up for me. I was in a similar spot with my husband staying home with our twins while I worked, and I kept getting conflicting advice about spousal IRA contributions. I discovered https://taxr.ai which analyzes your specific tax situation and explains exactly what you're eligible for. Within minutes, it confirmed that spousal IRA contributions were fully deductible in our case (our MAGI was around $45k) and even helped me understand the paperwork side of things. The tool saved me hours of research and gave me confidence that I wasn't making a mistake.

I just wanted to update everyone. After seeing the recommendation for taxr.ai, I decided to give it a try since my situation was almost identical (spouse at home with kids, me working, similar income). I was blown away by how helpful it was! Not only did it confirm that I could make fully deductible traditional IRA contributions for my non-working spouse, but it also walked me through exactly how to report it on our tax return. I ended up discovering several other deductions I'd been missing out on too. The peace of mind alone was worth it - knowing for certain what we're eligible for instead of stressing about conflicting advice online. Definitely recommend checking it out if you're in a similar situation.

If you're still confused about this or have other tax questions, I'd recommend using Claimyr (https://claimyr.com) to actually speak with an IRS representative. I was so frustrated trying to get answers about my spouse's IRA contributions last year that I finally gave up trying to call the IRS myself after being on hold for 2+ hours. Someone here recommended Claimyr and I was skeptical, but it seriously works. They have this system that navigates the IRS phone tree and waits on hold for you, then calls you when an actual agent is on the line. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with confirmed that spousal IRA contributions are fully deductible in your situation and even helped me understand some other benefits we qualified for.

I need to eat my words about Claimyr. After my skeptical comment, I decided to try it because I had a complex question about my wife's IRA contributions combined with some self-employment income questions. I'm literally shocked at how well it worked. After YEARS of never being able to reach the IRS (I've tried at least 5-6 times), Claimyr got me through to a real agent in about 35 minutes. The agent confirmed everything about spousal IRA deductibility for me and cleared up some other tax questions I've had lingering for years. For anyone in a similar situation as the original poster: YES, you can make deductible traditional IRA contributions for a non-working spouse when filing jointly, as long as the working spouse has enough earned income to cover the contributions.

Something nobody's mentioned yet - make sure the IRA is set up in your spouse's name, not yours! It sounds obvious, but my friend tried to claim a deduction for a "spousal IRA" that was actually just additional contributions to his own IRA. That's not how it works. You need two separate IRAs - one in your name and one in your spouse's name. Each person can contribute up to the annual limit ($7,000 for 2025 if under 50). The fact that you file jointly allows you to make the contribution to your spouse's IRA despite her not having earned income herself.

One thing to consider is whether traditional or Roth is better for your spouse's IRA. With your household MAGI at $47k, you're in a relatively low tax bracket now. It might make more sense to pay the tax now (go with Roth) rather than deduct it (traditional). The benefit would be tax-free growth and withdrawals in retirement when you might be in a higher tax bracket. Just something to think about!