On Form 1040, the federal individual income tax return form, line 32 is the Individual Retirement Account (IRA) deduction line. This line is located in the adjusted gross income section, which is income that is deducted from your total income to reduce your adjusted gross income, which in turn reduces the amount of tax you owe the federal government. IRA deductions can be taken if you or your spouse has made contributions to your IRA during the tax year, so long as you have earned income as well.

Step 1

Obtain a copy of the IRA deduction worksheet, included in the Form 1040 instructions (see Resources). Read the list included with the IRA deduction worksheet to determine whether or not you are eligible to take the IRA deduction. If you are, begin filling out the IRA deduction worksheet.

Step 2

Fill out the information requested on the IRA deduction worksheet using the information already entered on your 1040 form. You also will need to have your IRA contribution information available to accurately fill out this worksheet.

Step 3

Calculate the amount, if any, of the IRA deduction. The calculated amount will appear on Line 12 of the IRA deduction worksheet, and this is the amount you are eligible to take on Line 32 of your federal Form 1040. Taxpayers older than 70.5-years-old at the end of the tax year in question are not eligible for the IRA deduction.