Wilson and Joan, both in their 30s, file a joint income tax return for 2014. Wilson's wages are $15,000 and Joan's wages are $23,000 for the year. Their total adjusted gross income is $38,000, and Joan is covered by a qualified pension plan at work but Wilson is not.
a.What is the maximum amount that Wilson and Joan may each deduct for contributions to their individual retirement accounts?
b.If Joan's wages are $82,000 for 2014, instead of $23,000, and their adjusted gross income is $97,000, what is the maximum amount that Wilson and Joan may each deduct for contributions to their individual retirement accounts?

Question

Wilson and Joan, both in their 30s, file a joint income tax return for 2014. Wilson's wages are $15,000 and Joan's wages are $23,000 for the year. Their total adjusted gross income is $38,000, and Joan is covered by a qualified pension plan at work but Wilson is not.
a.​What is the maximum amount that Wilson and Joan may each deduct for contributions to their individual retirement accounts?
b.​​If Joan's wages are $82,000 for 2014, instead of $23,000, and their adjusted gross income is $97,000, what is the maximum amount that Wilson and Joan may each deduct for contributions to their individual retirement accounts?

Quizplus · Accepted Answer

The Answer of Wilson and Joan, both in their 30s, file a joint income tax return for 2014. Wilson's wages are $15,000 and Joan's wages are $23,000 for the year. Their total adjusted gross income is $38,000, and Joan is covered by a qualified pension plan at work but Wilson is not.
a.​What is the maximum amount that Wilson and Joan may each deduct for contributions to their individual retirement accounts?
b.​​If Joan's wages are $82,000 for 2014, instead of $23,000, and their adjusted gross income is $97,000, what is the maximum amount that Wilson and Joan may each deduct for contributions to their individual retirement accounts?

Wilson and Joan, Both in Their 30s, File a Joint