Here’s how it works. If your modified annual gross income is greater than $166,000 but less than $176,000 then, your deduction is phased out. This applies to married people who live with their spouse or to married people who file a joint return and your spouse is covered by a retirement plan at work, but you are not covered by one. If you fall into this category then, you cannot take a deduction for contributions to a traditional IRA.

Learn More Here: http://onlinetaxrefundestimator.com/traditional-ira-calculator-for-2009-2010/