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In infer from the OP that the $10,533 figure is the Schedule C bottom line. That needs to be reduced by the adjustment to income for 1/2 of the S/E tax on line 27 of the 1040. The net is the total allowable IRA contribution for the two spouses combined.

Hi Phil,

Thank you for your response. However, I do not understand what the above means. Could you explain further and in more detail as to what needs to be reduced and why.

Is my understanding correct: If line 27 on my 1040 is calculated at $667 then I should subtract $667 from the $10,533 figure on Schedule C to get $9866 and that is the total that we can put into an IRA?

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