Aaron is a 34-year-old head of household and a self-employed taxpayer. He contributed the maximum amount to his IRA account during the current year, and his net earnings from his business totaled $29,000. How much can Aaron deduct for AGI this year?

Question

Quizplus · Accepted Answer

For the tax year 2023, the maximum IRA contribution limit is $6,000 for individuals under the age of 50. Since Aaron is 34 and he contributed the maximum amount to his IRA, he can deduct the full contribution amount of $6,000 for his adjusted gross income (AGI), assuming he meets the income requirements. However, the options provided do not list $6,000, and the closest to the maximum contribution limit for an individual under 50 is $5,500, which might be based on previous years' limits. Therefore, without the correct option listed, the closest and most logical answer based on the information provided would be $5,500, acknowledging a potential discrepancy in the question's premise or a change in tax laws not reflected in the options.

Aaron Is a 34-Year-Old Head of Household and a Self-Employed