8. The maximum deductible IRA contribution for the year 2018 = 5500*(67000-63000)/(73000-63000) = $2,200
9. The tax portion = 9000-9000*(20000/(150000+9000)) = $7,868
#8. Venkat is age 32, single, and reported AGI of $67,000 inntax last year 2018. He...
Lance is single and has a traditional IRA into which he has made deductible contributions for several years. This year he changed employers and is now an active participant in his employer’s pension plan. His AGI is $95,000. He wants to make a nondeductible contribution to his IRA in the current year. What advice would you give Lance? (
Jill is single, age 27, and reported AGI of $61,000 in tax year 2013. She is an active participant in her employer's pension plan. What is the maximum deductible Roth IRA contribution she can make in 2013.
Smith, age 38, is an active participant in his employer’s defined benefit plan, but he would also like to makea deductible contribution to a traditional IRA this year. Smith is married, files a joint return with his husband, who is also an active member in his employer’s retirement plan, and has an AGI of $113,500 in 2018. What is the maximum deductible contribution that Smith can maketo a traditionalIRA?
If an individual (or spouse) is an active participant in an employer-sponsored retirement plan, he or she cannot make a deductible IRA contribution. True or False If only one spouse is employed, and that spouse is not covered under an employer-sponsored retirement plan, then the non-working spouse can make a deductible contribution to his or her own IRA. True or False With a Roth IRA, contributions are deductible, the account grows tax-free, and distributions are not taxable. True or False...
1) Victoria (42) is the sole proprietor of bakery. in 2018, she made SEP IRA contributions on behalf of herself and three employees. Her contributions were made in the following amounts: $9,000 in employer contributions for her employees. $2,500 in employer contributions to her own SEP IRA. How much will Victoria deduct on schedule 1 (Form 1040), line 28 (Self-employed SEP, SIMPLE, and qualified plans)? A)$2,500 B)$5,500 C)$9,000 D)$11,500 2) Edna, a single taxpayer, has traditional IRAs with a value...
Which of the following individuals can make a deductible contribution to a traditional IRA in 2018? Jack, who is married, has an AGI of $150,000, and his spouse is an active participant in her employer's defined contribution retirement plan, but he is r an active participant. Kelly, who is single, has an AGI of $80,000, and is an active participant in her employer's defined benefit plan. Leo, who is married, has an AGI of $130,000, and is an active participant...
In 2018, Max is 85 years of age and single. He received Social Security payments totaling $14,000 (this includes Medicare premium of $600), dividend and interest income of $21,000, a pension of $30,000 and a taxable IRA benefits of $16,000. What is Max's adjusted gross income for 2018? What is his taxable income? What is his tax owed?
Abiha is a 52-year-old an unmarried taxpayer who is not an active participant in an employer-sponsored qualified retirement plan. Before IRA contributions, his AGI is $68,000 in 2018. What is the maximum amount she may contribute to a tax deductible IRA? A) $4,500 B) $5,500 C) $6,500 D) $7,500 Prisha, a single 40-year-old physician, is covered by a qualified retirement plan at work. Her salary is $120,000, and her total AGI is $132,000. The maximum contribution she can make to...
Serena is a 40-year-old single taxpayer. She operates a small business on the side as a sole proprietorship. Her 2018 Schedule C reports net profits of $5,624. Her employer does not offer health insurance. Serena pays health insurance premiums of $7,545 in 2018. Serena also pays long-term care insurance premiums of $600 in 2018. Calculate Serena’s self-employed health care deduction. $____________ Evan participates in an HSA carrying family coverage for himself, his spouse, and two children. In 2018, Evan has...
Jordan is a calendar year, cash basis taxpayer. He is single, age 67, not blind, and cannot be claimed as a dependent by anyone else. Based on the following information, what is his taxable income for 2019? Wages from part-time employment $25,000 Holiday bonus paid in Bitcoin $500 Distribution from a traditional IRA $12,000 Interest on savings account $200 Inheritance received upon death of brother $2,500 Total charitable contributions $5,000 Total state income taxes paid $6,000