A: Whether you can deduct IRA contributions on your tax return depends on the type of IRA you have, your participation in an employer-sponsored retirement plan, and your income. Roth IRA contributions are never tax deductible; you must pay taxes on Roth IRA funds before you place them in your account.f youâre married filing separately, the tax deduction limits are drastically lower regardless of whether you or your spouse participate in an employer-sponsored retirement plan. If your income is less than $10,000, you can take a partial deduction; once you hit $10,000, you donât get any deduction.