Question
Mike, a 19 year old full time college studen, earned $3,000 in wages and had a net profit of $750 from self-employment. His maximum IRA
Mike, a 19 year old full time college studen, earned $3,000 in wages and had a net profit of $750 from self-employment. His maximum IRA contribution for 2016 is:
A. $750
B. $3,697
C. $3,750
D. $0
Joe, a retired single taxpayer, began receiving a montly pension from his former employer in Jan. 2016. He was age 66 when he received the first payment, and the pension will pay over the course of his life. He received a Form 1099R for the tax year showing a gross distribution of:
$8,000 in box 1,
code 7 in box 7,
and total employee contributions of $20,000 in box 9b.
Box 2a is blank, and box 2b indicates that the taxable amount is not determined.How much of Rick's distrubtion is taxable?
A. $16,858
B. $8,000
C. $6,858
D. $0
Chuck will retired this year. Net year he will receive social security benefits of approximately $18,000; 401k distribution of approx. $24,000 and his IRA RMD of approx. $9,000. He has not planned to have tax withheld on any payments nor has he filled out anything to exempt his payements from being taxed. How much tax will be withheld from his payments?
a. $1,250 withheld from social security
b. $0
c. $900 withheld from his IRA
d. $4,800 withheld from 401k
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started