In 2020, Susan (44 years old) is a highly successful architect and is covered by an employee-sponsored

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In 2020, Susan (44 years old) is a highly successful architect and is covered by an employee-sponsored plan. Her husband, Dan (47 years old), however, is a Ph.D. student and is unemployed. Compute the maximum deductible IRA contribution for each spouse in the following alternative situations.

a. Susan’s salary and the couple’s AGI before any IRA contribution deductions is $199,000. The couple files a joint tax return.

b. Susan’s salary and the couple’s AGI before any IRA contribution deductions is $129,000. The couple files a joint tax return.

c. Susan’s salary and the couple’s AGI before any IRA contribution deductions is $83,000. The couple files a joint tax return.

d. Susan’s salary and her AGI before the IRA contribution deduction is $83,000. Dan reports $5,000 of AGI before the IRA contribution deduction (earned income). The couple files separate tax returns.

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Taxation Of Individuals And Business Entities 2021

ISBN: 9781260247138

12th Edition

Authors: Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis, John Robinson, Connie Weaver, Ronald Worsham

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