Curtis is 31 years old, single, self-employed, and has no qualified pension plan. His net self-employment income is $33,000 and he contributes the maximum amount to his Keogh account during the current year. How much can Curtis deduct for AGI this year?
A)$- 0 -
B)$1,000
C)$3,100
D)$5,000
E)$6,600

Question

Quizplus · Accepted Answer

Curtis can deduct the lesser of 20% of his net self-employment income or $57,000 (the maximum contribution limit for a Keogh plan in 2020). Therefore, the maximum amount he can deduct for AGI is $6,600 (20% x $33,000).

Curtis Is 31 Years Old, Single, Self-Employed, and Has No