Problem 5-3 Individual Retirement Accounts (LO 5.3) Karen, 28 years old and a single taxpayer, has a salary of $33,000 and rental income of $33,000 for the 2020 calendar tax year. Karen 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 $65,000 - $75,000. a. What is the maximum amount that Karen may deduct for contributions to her traditional IRA for 2020? b. If Karen is a calendar year taxpayer and files her tax return on August 15, what is the last date on which she can make her contribution to the IRA and deduct it for 2020? Problem 5-15 Medical Expenses (LO 5.6) In 2020, Margaret and John Murphy (age 66 and 68, respectively) are married taxpayers who file a joint tax return with AGI of $28,108. During the year they incurred the following expenses: Medical insurance premiums $1,200 400 Premiums on an insurance policy that pays $100 per day for each day Margaret is hospitalized Medical care lodging (two people, one night) 80 Hospital bills 2,200 Doctor bills 750 Dentist bills 240 Prescription drugs and medicines 360 Marriage counseling 400 In addition, they drove 90 miles for medical transportation, and their insurance company reimbursed them $850 for the above expenses. On the following segment of Schedule A of Form 1040, calculate the Murphy's medical expense deduction. If required, round any amount to the nearest dollar. Enter all amounts as positive numbers. Caution. Do not include expenses reimbursed or paid by others. Medical 1 Medical and dental expenses (see instructions) 1 and 2 Enter amount from Form 1040 or 1040-SR, Dental line 11. ... 2 Expenses 3 Multiply line 2 by 7.5% (0.075). 3 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter -O