Wilson and Joan, both in their 30s, file a joint income tax return for 2020. 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.

1. What is the maximum amount that Wilson and Joan may each deduct for contributions to their traditional individual retirement accounts?

2. If Joan's wages are $88,000 for 2020, instead of $23,000, and their adjusted gross income is $103,000, what is the maximum amount that Wilson and Joan may each deduct for contributions to their traditional individual retirement accounts?

Answer rating: 100% (QA)

1 Based on the information provided we can determine the maximum amount that Wilson and Joan may each deduct for contributions to their traditional in... View the full answer