Question

2019 Tax Rate Schedules Individuals Schedule x Simple Schedule Head of lowed The tax is: Ir taxable income But not own Ir taxable income is But of The tas is! 59,00 10 of taxable income S 0 S 13550 10 of the come $ 0,700 S 39,475 S 13.550 S 52550 S1.355 plus 125 of 5970 plus 12 of the excess over 59,700 S350 5 39,475 54,543 pm 22 of 5 34,200 56,065 plus 225 of 5 52550 554.200 539,475 S52.550 S 54,200 S160,725 S4200 S160.700 $12.962 plus 245 of $14.352 50 plus 245 of the excess over $$4.200 $$4,200 S160,725 S204.100 $160700 S204.100 532,748.50 plus 325 of the excess over S160,725 313 22 plus 32% of the excess over S160.700 S204.100 5510.300 520-4.100 S3210 ps 35 of 546,628 50 plus 335 of the excess or 5.20-1.100 28 1 5510.300 S153,795,50 plus 37% of the excess over 5510.300 SS1000 Schedule Y-2 Married Filling Separately Schedule Y 1 Married Filing Jointly or Qualifying Widower) 1688 The tax is 3 If taxable income But not over Isover: S 0 S 19,400 10% of taxable incom S 19.400 S 75.950 S1.940 plus 12% of the excess over $19.400 SEBS S 78.950 $168.400 59.006 plus 22% of the excess over 573 950 * CORSE SEE w S168.400 5321.450 S28.765 plus 246 of the excess over $168.400 5321.450 S405.250 S160,725 ww 565.497 plus 32% of the excess over 5321.450 SO50 5612.350 106.175 593.257 plus 35% of the excess over 5409.750 S16,623 50 plus 35% of the excess over S204.100 S612150 306.17 $164,709.50 plus 37% of the sets S612.350 S52.354 75 plus 37% of the c over 5306,175

Answer 1

Information Given -

Jackson and Ashley Turner (both 45 years old) are married and want to contribute to a Roth IRA for Ashley. In 2019, their AGI is $198000. Jackson and Ashley each earned half of the income.

.

( a ) -- How much can Ashley contribute to her Roth IRA if they file a joint return?

Answer -

Ashley's Modified AGI = ($198000 / 2) = $99000.

As per U.S. Internal Revenue Service, Maximum contribution limit to Roth IRA is $6000, for taxpayers, married filing jointly and having Modified AGI Less than $193000.

Therefore, Ashley's contribution to her Roth IRA = $6000, because her Modified AGI is less than $193000.

.

( b ) -- How much can Ashley contribute to her Roth IRA if they file a separate return?

Answer -

Ashley's Modified AGI = ($198000 / 2) = $99000.

As per U.S. Internal Revenue Service, Contribution limit to Roth IRA is $0 for taxpayers, married filing separately and having Modified AGI of $10000 or more.

Therefore, Ashley's contribution to her Roth IRA = $0, because her Modified AGI is more than $10000.

.

( c ) -- Assume that Ashley earned all of the couple’s income and that she contributed the maximum amount she is allowed to contribute to a Roth IRA. What amount can be contributed to Jackson’s Roth IRA?

Answer -

Ashley's Modified AGI = $198000

As per U.S. Internal Revenue Service, Maximum contribution limit of $6000 to Roth IRA is subject to a phaseout, for taxpayers, married filing jointly and having Modified AGI between $193000 to $203000.

Therefore, The amount can be contributed to Jackson’s Roth IRA -

= [($203000 - $198000) / ($203000 - $193000)] * $6000

= $3000