Kerry is single and has AGI of $25,000 in 2013.During the year he contributes $5,000 to his Roth IRA.What is the amount of qualified retirement savings contributions credit to which he is entitled?

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Quizplus · Accepted Answer

Kerry is entitled to a credit of 10% of his contribution, which is $500. However, the credit is phased out for taxpayers with AGIs above certain levels. For 2013, the phase-out begins at $50,000 for single filers. Since Kerry's AGI is $25,000, he is entitled to the full $500 credit.

Kerry Is Single and Has AGI of $25,000 in 2013