a. A married couple filing jointly with modified AGI of $37,500 and an IRA contribution of $1,800. b. A married couple filing jointly with modified AGI of $58,000 and an IRA contribution of $1,900. Credit

a. A married couple filing jointly with modified AGI of $37,500 and an IRA contribution of $1,800. b. A married couple filing jointly with modified AGI of $58,000 and an IRA contribution of $1,900. Credit

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter19: Deferred Compensation

Section: Chapter Questions

Problem 57P

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

Determine the retirement savings contributions credit in each of the following independent cases. Use Table 9-2.
a. A married couple filing jointly with modified AGI of $37,500 and an IRA contribution of $1,800.
b. A married couple filing jointly with modified AGI of $58,000 and an IRA contribution of $1,900.
c. A head of household taxpayer with modified AGI of $33,000 and Roth IRA contribution of $1,990.
d. A single taxpayer with modified AGI of $12,000 and an IRA contribution of $2,800.
Retirement
Savings
Contributions
Credit

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Step 2: For a head of household taxpayer with an AGI between $32,626 and $35,625,

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