Realizing that providing for a comfortable retirement is up to them,Jim and Julie commit to making regular contributions to their IRAs,beginning this year.Consequently,they each make a $2,000 contribution to their traditional IRA.If their AGI is $35,000 on their joint return,what is the amount of their credit for certain retirement plan contributions?

Question

Quizplus · Accepted Answer

The available credit for taxpayers reporting AGI of $35,000 on a joint return is limited to 50% times up to $2,000 for each eligible individual who makes a contribution.Therefore,the credit is equal to $2,000 [50% × ($2,000 × 2)].

Realizing That Providing for a Comfortable Retirement Is Up to Them,Jim