plm66:I can't figure out if my husband is eligible to contribute to either a traditional or Roth this year.
If he's under 70 1/2 and has compensation (or you do), he can contribute to a traditional IRA. The question is whether he can deduct the contribution.
deduct line 27: 1/2 of self employment tax: 2092
deduct line 28: SEP ira: 5503
this is for my business, I'm self employed, sole proprietorship
Husband is an employee of a regular company.
Line 37, AGI is 156,656. I can't figure out if we have to add the above two things back in and have a MAGI of 164,251 or if MAGI is 156,656.
No, you don't add either of those back. See Worksheet 1-1 in Pub. 590 for a specific list of the lines you add back.
I do not know if his employer offers a 401k, but if so, husband did not participate. I can't figure out if it makes a difference if a retirement plan was offered and we didn't participate, vs. none offered.
If that's the only plan, the question is whether he "actively participated"; if he didn't, it doesn't matter that he could have. If there was a defined benefit plan, it's much more complicated. You should be able to tell by looking at the retirement plan box on his W-2, but just being eligible for a 401(k) is not active participation.
Is husband eligible for either a traditional (deductible) IRA or a Roth?
If your MAGI was $156,656 (i.e., there were no other modifications), since you participated in an employer plan (your SEP), he is eligible for a deduction for slightly less than the general maximum. See Worksheet 1-2 of Pub. 590. Likewise, for Roth IRA contribution purposes, since if your MAGI was $156,000, he (and you) is not eligible for the full contribution but will be pretty close if there were no other modifications.
