Micah and Lin Davos file a joint tax return. Each spouse contributed the maximum $6,500 to...

 

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Micah and Lin Davos file a joint tax return. Each spouse contributed the maximum $6,500 to a traditional IRA. Required: In each of the following cases, compute the deduction for these contributions. The AGI in each case is before any deduction. a. Neither spouse is an active participant in a qualified retirement plan, and their AGI is $142,000. b. Micah is an active participant, but Lin is not. Their AGI is $152,800. c. Both spouses are active participants, and their AGI is $85,050. d. Micah is self-employed and does not have a SEP plan. Lin is an active participant. Their AGI is $126,600. Note: Do not round intermediate calculations. Amount a. Deductible amount $ b. Deductible amount c. Deductible amount $ d. Deductible amount Micah and Lin Davos file a joint tax return. Each spouse contributed the maximum $6,500 to a traditional IRA. Required: In each of the following cases, compute the deduction for these contributions. The AGI in each case is before any deduction. a. Neither spouse is an active participant in a qualified retirement plan, and their AGI is $142,000. b. Micah is an active participant, but Lin is not. Their AGI is $152,800. c. Both spouses are active participants, and their AGI is $85,050. d. Micah is self-employed and does not have a SEP plan. Lin is an active participant. Their AGI is $126,600. Note: Do not round intermediate calculations. Amount a. Deductible amount $ b. Deductible amount c. Deductible amount $ d. Deductible amount

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To determine the deductible amount for contributions to a traditional IRA we need to consider the eligibility based on the active participation in a q... View the full answer