9.6 For the year 2013, Katy (age 35) and Stefen (age 38), a married couple, repo
ID: 2418654 • Letter: 9
Question
9.6 For the year 2013, Katy (age 35) and Stefen (age 38), a married couple, reported the following items of income:
Katy
Stefen
Total
Wages
$50,000
--
$50,000
Dividend Income
$2,000
$1,200
$3,200
Cash Won from Lottery
--
$500
$500
Total
$52,000
$1,700
$53,700
Katy is covered by a qualified plan. Stefen does not work, he makes wine and drinks all day. Assuming a joint return was filed for 2013, what is the maximum tax deductible amount that they can contribute to their IRA’s? Please show work for full credit.
a. $2,500
b. $5,500
c. $7,500
d. $11,000
Katy
Stefen
Total
Wages
$50,000
--
$50,000
Dividend Income
$2,000
$1,200
$3,200
Cash Won from Lottery
--
$500
$500
Total
$52,000
$1,700
$53,700
Explanation / Answer
b. $5,500,
Katy (age 35) and Stefen (age 38), a married couple ,age less than 50years
Income limit from $0 to $59000 for year 2013, recieve full deduction of contribution made in IRA , in this case total eaning = $53700
contribution limit for Filing Joint retrun for married couple under age of 50 years = $5500 to IRA
Therefore, contribution is maximum deductible to $5500 for year2013
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