Courtney and Lisa (both age 30), a married couple who file a joint return, take the standard deduction. They reported combined salary and wages of $33,000. Courtney made a $4,000 contribution to his traditional IRA. What is their tax liability after credits?

Question

Quizplus · Accepted Answer

$33,000 - $4,000 = $29,000 AGI; $29,000 - ($3,700 x 2) - $11,600 = $10,000; $10,000 x .10 = $1,000; $1,000 - $1,000 credit for IRA contribution = $0. (IRA maximum credit is 50% of $2,000.)

Courtney and Lisa (Both Age 30), a Married Couple Who