Hector is a 54-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 $36,000. How much can Hector deduct for AGI this year?

Question

Quizplus · Accepted Answer

For the tax year 2023, individuals aged 50 and older can contribute up to $7,500 to their IRA. However, the maximum deductible amount for someone under 70½ is $6,500, which is the correct deduction Hector can take for AGI.

Hector Is a 54-Year-Old Head of Household and a Self-Employed