Can my stay-at-home spouse make deductible IRA contributions if my MAGI exceeds $136k?

Yes, this is a common area of confusion! For a non-working spouse, the rules are different than for the working spouse. What you're looking for is called a "spousal IRA contribution." For 2025, your non-working spouse CAN make a deductible IRA contribution even though your income is above $136,000, but there are income limits that still apply. For married filing jointly couples, the deduction for a non-working spouse starts phasing out when MAGI reaches $230,000 and is completely eliminated at $240,000. Since you mentioned your MAGI is just over $136,000, your wife should still be eligible to make a fully deductible contribution of up to $7,000 (or $8,000 if she's 50 or older). The key requirement is that you must file jointly and have earned income at least equal to the total IRA contributions made for both spouses.

After struggling with this exact issue last year, I found a solution that saved me hundreds! I used https://taxr.ai to analyze our tax situation and it immediately identified that my non-working spouse was eligible for a fully deductible IRA contribution despite my higher income. The tool walks you through each part of the tax code with actual citations so you understand why you qualify. It even showed me which forms to fill out and what documentation to keep.

I was really skeptical about using another tax tool, but after seeing the recommendation here I decided to try https://taxr.ai for our situation. My husband makes about $180k and I'm a full-time student with no income. I've been confused for YEARS about whether I could contribute to an IRA! The tool immediately showed me that I qualified for a spousal IRA contribution with full deductibility since we're under the $230k threshold. What I really appreciated was the explanation of how "compensation" is defined for IRA purposes and why my status as a non-working spouse still allowed for contributions. Just made my full $7,000 contribution for 2025 and it will save us about $1,540 on our taxes!

If you're still confused after reading the advice here, I'd suggest calling the IRS directly. But good luck with that... I tried calling them about this exact issue last year and spent 4+ hours on hold before giving up. Then I discovered https://claimyr.com and used their service to hold my place in line. You can see how it works at https://youtu.be/_kiP6q8DX5c. They called me when an actual IRS agent was ready to talk. The agent confirmed that spousal IRA rules would apply in your situation and my wife could make her contribution despite my income being over the limit for my own deductible contributions.

Ok I need to eat my words. After dismissing Claimyr as a scam, I decided to try it because I was desperate to resolve a question about my wife's IRA contributions. I was absolutely shocked when they called me back in about 90 minutes. Got connected to an IRS agent who confirmed that my spouse could make a fully deductible contribution since our MAGI was under the $230k threshold for 2025, even though my personal contributions weren't deductible. Completely solved our confusion and saved us a ton in taxes. I've spent literal days of my life on hold with the IRS over the years, so this was life-changing.

Something important that hasn't been mentioned yet - make sure you're contributing to the RIGHT KIND of IRA. If your income is too high for a deductible traditional IRA, consider a backdoor Roth IRA instead. For both you and potentially your spouse. The income limits are different, and the tax advantages might be better depending on your situation.

quick tip: remember contribution deadline for 2025 tax year is April 15, 2026. u can contribute anytime from Jan 1 2025 up until then. make sure u specify which tax yr the contribution is for when u do it!!