2010 Estimated Taxes and IRA Deductions

Hard to believe it’s February already!

We continue today with our series of posts about the changes to estimated taxes for 2010. In case you haven’t been following the blog lately, we’ve been covering the things the IRS suggests you keep in mind for 2010 estimated tax payments.

Today’s topic is IRA deductions.

According to the IRS, you may be able to take an IRA deduction if you were covered by a retirement plan and your 2010 modified Adjusted Gross Income (AGI) is less than $66,000 ($109,000 if married filing jointly or qualifying widow(er)). If your spouse was covered by a retirement plan, but you were not, you may be able to take an IRA deduction if your 2010 modified AGI is less than $177,000.