Isabela is single and turned 72 years old on October 1, 2022. Isabela worked as a librarian at the local library and earned wages of $7,500. Isabela also received Social Security benefits of $16,000. She received a taxable pension of $13,000. She retired from her previous job on October 30, 2019. During her career she contributed pretax dollars to a qualified 401(k) retirement plan through her employer. Isabela cannot be claimed as a dependent by another taxpayer. Isabela is a U.S. citizen with a valid Social Security number. 9. What credit(s) is Isabela eligible to claim?                       A. Credit for the Elderly or the Disabled                   B. Earned Income Tax Credit                   C. Both the Credit for the Elderly or the Disabled and the Earned Income Tax Credit                   D. Neither the Credit for the Elderly or the Disabled or the Earned Income Tax Credit           10. When must Isabela begin taking her first required minimum distribution?                       A. April 1 of the calendar year following the year she reaches age 70 1/2.                   B. April 1 of the calendar year following the year she reaches age 72.                   C. April 1 of the calendar year following the year she retired.

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 34P
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  • Isabela is single and turned 72 years old on October 1, 2022.
  • Isabela worked as a librarian at the local library and earned wages of $7,500. Isabela also received Social Security benefits of $16,000. She received a taxable pension of $13,000.
  • She retired from her previous job on October 30, 2019. During her career she contributed pretax dollars to a qualified 401(k) retirement plan through her employer.
  • Isabela cannot be claimed as a dependent by another taxpayer.
  • Isabela is a U.S. citizen with a valid Social Security number.
9. What credit(s) is Isabela eligible to claim?
 
 
     
 
 
     
  A. Credit for the Elderly or the Disabled  
     
 
     
  B. Earned Income Tax Credit  
     
 
     
  C. Both the Credit for the Elderly or the Disabled and the Earned Income Tax Credit  
     
 
     
  D. Neither the Credit for the Elderly or the Disabled or the Earned Income Tax Credit  
   

 

 

10. When must Isabela begin taking her first required minimum distribution?
 
 
     
 
 
     
  A. April 1 of the calendar year following the year she reaches age 70 1/2.  
     
 
     
  B. April 1 of the calendar year following the year she reaches age 72.  
     
 
     
  C. April 1 of the calendar year following the year she retired.  
     
 
     
  D. Never. Required minimum distributions only apply to Roth IRAs
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