Question

Gene and Dixie, husband and wife (ages 35 and 32), both work. They have an adjusted...

Gene and Dixie, husband and wife (ages 35 and 32), both work. They have an adjusted gross income of $95,000 in 2017, and they are filing a joint income tax return. Both have employer-provided retirement plans at work. What is the maximum IRA contribution they can make? How much of that contribution is tax-deductible?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer :- Maximum IRA contribution : $5500

Contribution which is tax deductible : $5500

Explanation :-

The range for taxpayers who are active participants and use the married filing jointly filing status is $99,000 - $109,000 for 2017.

As Gene and Dixie's AGI is not within this range, they can make a full $5500 deductible contribution to a traditional IRA. That is only the maximum limit $5500.

Note :- As given AGI is of 2017, so limits has been taken of 2017.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Joyce and Barry Bright are both employed and 56 years of age. In 2017 Barry earned...
Joyce and Barry Bright are both employed and 56 years of age. In 2017 Barry earned wages of $2500; Joyce earned wages of $86530. Joyce is an active participant in her employer-maintained pension plane. The Brights plan to file a joint tax return. Their modified AGI is $10,9782. A) What is the latest date by which an IRA contribution must be made in order for it to be claimed on the Bright's 2017 return? B) Can the tax payments be...
-Jack (age 52) and Jill (age 49) are a married couple. Jack is covered under a...
-Jack (age 52) and Jill (age 49) are a married couple. Jack is covered under a qualified retirement plan at his job and earned $180,000 in 2018. Jill is employed as a lab technician and earned $42,000 but is not covered under a qualified retirement plan. They file a joint return; have interest and dividend income of $25,000. What is their maximum for AGI deduction for contributions to a traditional IRA? A) $0 B) $5,500 C) $6,500 D) $12,000 -Reyansh...
The Millers, a family of four filing a joint return, have the following information to prepare...
The Millers, a family of four filing a joint return, have the following information to prepare their 2017 federal income taxes. Wages and salaries: $100,000 Interest income 3,000 ($1,000 in tax-exempt municipal bonds) State and local income taxes 5,500 Property taxes 4,800 General sales taxes 2,450 Home mortgage interest 11,500 Medical expenses 5,000 (not reimbursed) Cash charitable contribution 450 For the Millers, calculate the following: 1) Adjusted Gross Income (AGI) 2) Taxable Income 3) Tax 4) Effective tax rate
For this assignment, you will read the scenario and then use the provided Excel and Word...
For this assignment, you will read the scenario and then use the provided Excel and Word document templates to complete your assignment before uploading them to the assignment submission area. Scenario Larry and Beth are both married, working adults. They both plan for retirement and consider the $6,000 annual contribution a must. First, consider Beth's savings. She began working at age 20 and began making an annual contribution to her IRA of $6,000 each year until age 32 (12 contributions)....
10-In Year 1, Sandy and Chris have adjusted gross income of $200,000. During the year, they...
10-In Year 1, Sandy and Chris have adjusted gross income of $200,000. During the year, they provided more than half of the support for both of their unmarried adult children, Megna and Britt. Both children live near the colleges they are attending. Megna is a 25-year-old full-time graduate student with no earned income. Britt is a 22-year-old part-time student with $15,000 earned income from a part-time job. What is the total amount of family tax credit, if any, that Sandy...
John and Mary, both 45 years old, are married and have one child, age 10. They...
John and Mary, both 45 years old, are married and have one child, age 10. They plan to pay for his college at an in-state university from age 18 to 23 and they would like to retire at age 62. They have provided the following financial data. Joint employment income $180,000 John’s 401(k) plan contributions $16,500 Mary’s IRA contributions $4,000 John’s 401(k) plan employer match $5,000 Annual gifts from John’s parents $10,000 Total Investment Assets $360,000 Total Cash and Cash...
Tax Return Problem –?Decision Making –?Communications Daniel B. Butler and Freida C. Butler, husband and wife,...
Tax Return Problem –?Decision Making –?Communications Daniel B. Butler and Freida C. Butler, husband and wife, file a joint return. The Butlers live at 625 Oak Street in Corbin, KY 40701. Dan's Social Security number is 111-11-1112, and Freida's is 123-45-6789. Dan was born on January 15, 1965, and Freida was born on August 20, 1966. During 2016, Dan and Freida furnished over half of the total support of each of the following individuals, all of whom still live at...
​(​EBIT-EPS analysis​) Bill and Kate Theil are not only husband and wife but entrepreneurs who have...
​(​EBIT-EPS analysis​) Bill and Kate Theil are not only husband and wife but entrepreneurs who have established three successful businesses. The proposed plan for their latest effort involves a series of international retail outlets to distribute and service a full line of ingenious home garden tools. The stores would be located in​ high-traffic cities in Latin America such as Panama​ City, Bogotá,​ São Paulo, and Buenos Aires. The entrepreneurs have proposed two financing plans. Plan A is an all​ common-equity...
TAX PROBLEM: Comprehensive Problem(TAX RETURN PROBLEM) Bill and Alice, husband and wife and both age 42,...
TAX PROBLEM: Comprehensive Problem(TAX RETURN PROBLEM) Bill and Alice, husband and wife and both age 42, have the following transactions during 2020: a) They sold their old residence on Jan. 28,2020 for $380,000. The basis of their old residence, purchased in 2010, was $70,000. The selling expenses were $20,000. On May 17,2020, they purchased and moved into another residence costing $150,000. b) On April 28,2020, they sold for $8,000 stock that Alice had received as a gift from her mother,...
1) Martha (53) works part-time, in addition, she is taking classes at the local university. This...
1) Martha (53) works part-time, in addition, she is taking classes at the local university. This year, Martha was enrolled in seven hours for one semester and three for another.The university considers 12 credit hours to be full time. Martha deferred $4000 of compensation through her employer's 401(k) plan. Her AGI for 2018 was $30,500. How much is Martha's Saver's Credit, assuming no tax liability limit applies? A) $0 B) $400 C)$800 D)$2,000 2) Jack and Kendra are married and...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT