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Scenario $1$: Retirement Contributions and Tax Planning

Wages: Michael $($$$85,000),$ Jessica $($$$62,000)$

Qualified Business Income: None

Itemized Deductions: $$28,000($high property taxes and mortgage interest$)$

Allowable deduction for self$-$employment tax: $$0$

Ages: Michael $(42),$ Jessica $(38)$

Calculate AGI and taxable income. Then, analyze the following:

If each contributes the maximum to a traditional IRA, how does this impact their taxable income?

If Michael contributes

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