Dean and Sue are married filing jointly with AGI of $28,000.They made a $1,500 contribution to a qualified retirement plan.How much is their retirement savings contributions credit?

Question

Quizplus · Accepted Answer

The retirement savings contributions credit is calculated based on the taxpayer's AGI and the amount contributed to a qualified retirement plan. In this case, Dean and Sue's AGI is $28,000 and their contribution is $1,500, which puts them in the 50% credit rate category. The maximum credit for their filing status is $1,000 which means they are eligible to claim a credit of $750 (50% of $1,500). Therefore, the correct answer is (C) $750.

Dean and Sue Are Married Filing Jointly with AGI of $28,000.They