Siena is married to Kendall, but they have lived separately since Kendall moved out of the home in April 2023. Siena does not want to file a joint return.

 

Siena and Kendall have a 3 year old daughter, Kenna. Kenna lives with Siena and visits Kendall on weekends. Siena received a $3,000 qualified birth distribution from her IRA on March 31, 2020.

Siena's mother, Stacy, moved in with Siena in April. She watches Kenna while Siena works. Stacy receives $12,000 per year from Social Security, and a taxable pension of $500 per month. Stacy is widowed. Siena calculated that Siena paid more than half of her mother's support for the year.

Siena is a full-time science teacher at a local public middle school. She spent $400 of her own money to purchase supplies for labs she conducted with her students. She did not receive any reimbursement for these expenses.

On weekends and during the summer, Siena works part-time as a driver for Delicious Deliveries. She provided a statement from the food delivery service that indicated the number of miles driven and fees paid for the year. These fees are considered ordinary and necessary for the food delivery business:

o 5,700 miles driven while delivering food

o Insulated box rental: $300

o GPS device fee: $200

Siena's record keeping application shows she also drove 1,100 miles between deliveries and 560 miles driven between home and the first and last delivery point of the day. She also drove 10,000 miles for personal purposes. Siena does not have a separate car for personal use. She started using her car for business on May 17, 2023.

Siena also kept receipts for the following out-of-pocket expenses:

o $100 on tolls

o $50 for parking

o $48 for parking tickets

o $150 for snacks and lunches Siena consumed while working

Siena provided the Form 1099-K that she received from Delicious Deliveries.

Siena contributed $6,000 to her traditional IRA. She also contributed to her retirement plan at work.

Siena, Kenna, and Stacy are U.S. citizens, have valid Social Security numbers, and lived in the United States all year.

14. What is the amount of Siena's retirement savings contributions credit?

a. $0

b. $200

c. $400

d. $1,000