Problem $5-3$

Individual Retirement Accounts $($LO $5\mathrm{.}3)$

Shyla, $28$ years old and a single taxpayer, has a salary of $$41,000$ and rental income of $$33,000$ for the $2023$ calendar tax year. Shyla is covered by a pension through her employer. AGI phase$-$out range for traditional IRA contributions for a single taxpayer who is an active plan participant is $$73,000-$$$83,000.$

a$.$ What is the maximum amount that Shyla may deduct for contributions to her IRA for $2023?$

Feedback

Check My Work

There are two principal types of IRAs in the U$.$S$.$ tax law. One is the traditional IRA and the other is the Roth IRA. Annual contributions to a traditional IRA are deductible, and retirement distributions are taxable. The annual deduction maximums are reduced for traditional IRAs if the taxpayer is an active participant in another qualified retirement plan.

b$.$ If Shyla is a calendar year taxpayer and files her extended tax return on August $15,$ what is the last date on which she can make her contribution to the IRA and deduct it for $2023?$