Mr. Gilbert is self-employed and makes annual contributions to a Keogh plan. Mrs. Gilbert’s employer doesn’t offer any type of qualified retirement plan. Each spouse contributes $3,500 to a traditional IRA. In each of the following cases, compute the AGI on their joint return.
Compute the AGI on their joint return if AGI before an IRA deduction is $196,600. (Do not round intermediate calculations.)
(a) As the adjusted gross income is more than $110,000 the contribution is deductible
So, AGI on joint return = 134,000 - 3,500 = $130,500
(b) As the adjusted gross income is more than $110,000 the contribution is deductible
So, AGI on joint return = 196,600 - 3,500 = $193,100
Mr. Gilbert is self-employed and makes annual contributions to a Keogh plan. Mrs. Gilbert’s employer doesn’t...
Mr. Gilbert is self-employed and makes annual contributions to a Keogh plan. Mrs. Gilbert’s employer doesn’t offer any type of qualified retirement plan. Each spouse contributes $3,200 to a traditional IRA. Required: Compute the AGI on their joint return if AGI before an IRA deduction is $131,000. Compute the AGI on their joint return if AGI before an IRA deduction is $199,300.
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