Question

the retirement savings contributions credit in each of the following cases. Use Table 9-2 Answer is complete but not entirely correct. Retirement Savings Contributions Credit 805 arried couple filing jointly with modified AGI of $37,500 and an IRA contribution of $1,810. 152 arried couple filing jointly with modified AGI of $58,000 and an IRA contribution of $1,520. 180 iad of household taxpayer with modified AGI of $33,000 and Roth IRA contribution of $1,800. 1,163 ngle taxpayer with modified AGI of $12.000 and an IRA contribution of $2,325

Answer 1

Answer -

The retirement savings contributions credit in each of the following cases -

	Reasons / Calculations	Retirement Savings Contributions Credit
Married couple filing jointly with modified AGI of $37500 and an IRA contribution of $1610.	[ $1610 * 50% ]	$805
Married couple filing jointly with modified AGI of $58000 and an IRA contribution of $1520	[ $1520 * 10% ]	$152
Head of household taxpayer with modified AGI of $33000 and Roth IRA contribution of $1800	[ $1800 * 10% ]	$180
Single taxpayer with modified AGI of $12000 and an IRA contribution of $2325	In the given case IRA contribution is $2325. The maximum contribution amount that may qualify for the credit is $2000 for Single taxpayer's as per federal income tax law. Therefore, Maximum IRA contribution that may qualify for the credit is $2000. So, Retirement Savings Contributions Credit = [ $2000 * 50% ] = $1000	$1000