Sally, age 45, single, no dependents, has wages of $60,000 in 2020 and no other income. She is not covered by a retirement plan at work. In 2020, she contributed $5,000 to a traditional IRA. What is Sally’s AGI?

Q: Jacquiline is unmarried and age 32. Even though she participates in an employer-sponsored retirement…

A: Given: Contribution = $3,000 Marginal tax rate = 12%

Q: Hillary gets divorced in 2020 and is required to pay her ex-spouse $200 per month until her son…

A: Alimony refers to the amount that is received periodically by a single person from the ex-husband's…

Q: Mazik, age 17, is a dependent of his parents. Mazik earned wages of $12,500 and had no investment…

A: Income tax liability on the income of an individual depends on his or her tax filling status. The…

Q: Ursula, an employee of Ficus Corporation, is 35 years old and plans to retire in 20 years. The…

A:

Q: In 2020, Mary, age 70 and head of household (unmarried), had income of $37,000 and exclusions of…

A: Given : Mary's  age 70 and head of household (unmarried) Income =  $37,000 Exclusions =  $500…

Q: Devi was divorced in 2019 and receives child support of $250 per month from her ex-husband for the…

A: Income tax allows to claim child tax credit if following conditions are satisfied. 1. The child must…

Q: Karen, 28 years old and a single taxpayer, has a salary of $33,000 and rental income of $33,000 for…

A: AGI (Adjusted gross income) refers to the gross income remained after deducting the annual gross…

Q: Quinn is single, age 52 and has the following income and expenses for 2020: Wages earned 40,000…

A: In the context of the given question, we are required to compute the adjusted gross total income of…

Q: Darius, an unmarried individual, lived with his 15 year old daughter, Jackie, during all of 2021.…

A: Taxable income: It implies to the taxpayer's income that is subjected to tax charges.

Q: Jeremy, age 38, has $25,000 in a traditional IRA account and is considering taking the money out to…

A: Tax: Tax refers to a compulsory payment or a contribution to the state revenue, levied by the…

Q: What is the total “For AGI” deductions? Paul Turner is single and has two children, Allen and Lee…

A: Alimony deductible refers to the allowances which are allowed for husband or wife by the order of…

Q: Mary is a 47-year old corporate attorney. She earns $225,000 per year and receives group term life…

A: Income from the benefits which has been got by the employee from the employer requires to be…

Q: Caleb is age 51 and works for Helena Corporation, where he earned $110,000. Celeste (age 48), his…

A: For 2020, the total contribution in a year which can be made to all traditional and Roth IRA cannot…

Q: Serena is a 38-year-old single taxpayer. She operates a small business on the side as a sole…

A: Deduction represents the amount that is deducted from the tax liability of the individual.

Q: He sets up a SEP IRA.     b. He sets up an individual 401(k).

A: He can contribute maximum amount of 25% of his net income, upper limit being $55,000 in 2021 and…

Q: In 2021, Madeline earns $51,000 from her regular job. She also earns $2,000 in ordinary dividends…

A: There are 5 types of filing status prescribed by the IRS:- 1. Single 2. Married filing jointly 3.…

Q: Alice, age 50, is provided “free” group term life insurance coverage equal to four times her annual…

A: Alice's annual salary: $200,000 Group term life insurance coverage: $200,000 x 4 = $800,000 Under…

Q: Martha and Rob, a married couple, under 50 years of age, have adjusted gross income on their 2019…

A: In case of married filing jointly and under 50 years of age, contribution limit to IRA is $6,000 in…

Q: Morgan contributes $6,000 in 2019 to her Roth IRA, how much can Seth contribute to his traditional…

A: There is no age of earning, one can start earning or investing at an initial stage. Investment is…

Q: Ava and her husband, Leo, file a joint return and are in the 24% Federal income tax bracket in 2020.…

A: In case of b part, if Ava avails the plan then income tax savings will be 10% of reimbursement…

Q: Marta is 52 years of age and expects to retire from her current employer at age 65. Marta’s employer…

A: Qualified Retirement plan: This is an agreement between the employer and the employee regarding the…

Q: In 2020, Bianca earned a salary of $189,000 from her employer. Determine the amount of FICA Social…

A: Answer The Social Security  withholding rate is gross pay times 6.2% up to the maximum pay level for…

Q: Rasheed works for Company A, earning $350,000 in salary during 2020. Assuming he is single and has…

A: FICA tax: FICA stands for federal insurance contribution act. This is the tax paid by both employer…

Q: Joey, who is single, is not covered by another qualified plan and earns $126,000 at his job in 2020.…

A: Introduction: IRA : IRA means Individual Retirement Account. Money can be saved in this account for…

Q: Donna, age 42 and a single taxpayer, has a salary of $104,500 and interest income of $20,000. What…

A: We have the following information: Donna has a salary of $104,500 Interest Income: $20,000

Q: Donald, a wealthy banker, has a 24-year-old son, Junior, that has struggled to keep a job. In 2018,…

A: Calculate the maximum credit available.Tax liability of person J is considered as the maximum credit…

Q: During 2020, Murray, who is 60 years old and unmarried, provided all of the support of his elderly…

A: Correct option is a. head of household and 1 dependent.   Explanation:

Q: What is the maximum amount that Terry and Jennifer may each deduct for contributions to their…

A: Pension plan: Pension plan can be defined as the plan where both employer and employee contribute…

Q: Baron, age 35, is a single parent with two dependent child. He recently purchased a house for…

A: Payment protection plans seem to be an optional service offered by select lenders as well as credit…

Q: In 2020, Ashley earns a salary of $ 55,000, has capital gains of $ 3,000, and receives interest…

A: Tax refers to the amount charged by the government from the individuals and organizations on the…

Q: Jody is a physician's assistant (not covered by a retirement plan) with a salary of $40,000 from the…

A: Solution Your traditional IRA contribution may be tax deductible . The deduction may be limited if…

Q: his parents. Malik earned wages of $2,500 and he had investment in

A: A tax is a compulsory contribution or financial charge levied by the government on the income earned…

Q: Paul, age 40 and single, has an 8-year-old son, Larry. Larry resides with his mother, Susan, in her…

A: Answer:-  Standard deduction:- Standard deduction is that portion of income which is not subject to…

Q: Mazik, age 17, is a dependent of his parents.Mazik earned wages of $12,500 and had no investment…

A: Solution -  A wages $12500 AGI $12500   B Standard deduction= $12150  greater of $1100 or…

Q: In 2020, Mary, age 70 and head of household (unmarried), had income of $37,000 and exclusions of…

A: A tax is a compulsory contribution or financial charge that is levied by the government on the…

Q: The following information applies to Jasmine, who is single, for 2020: Salary $56,350 Interest…

A: Solution-    Taxable income=Gross total income-Total Exemption-Total deduction The first step to…

Q: Amber's employer, Lavender, Inc., has a § 401(k) plan that permits salary deferral elections by its…

A: 401(k) plan: It is a retirement savings account that permits the employees to make contributions…

Q: a. Gina, their daughter, age 22, a full-time student, who married on December 21, 2018, has no…

A: A tax deduction is declared by the taxable assessee for which the tax is being determined and he…

Q: Mabel is 45 and earned $30,000 in 2018.  If she contributed $6,000 to her traditional IRA, what…

A: Mabel is 45 and earned $30,000 in 2018.  If she contributed $6,000 to her traditional IRA, what…

Q: Phil and Linda are 25-year-old newlyweds and file a joint tax return. Linda is covered by a…

A: The maximum contribution limit to Traditional IRA is $ 6000 per person or $ 12000 if MFJ. The…

Q: Sean, who is single, received social security benefits of $8,000, dividend income of $13,000, and…

A: Given information is: Social security benefits = $8000 Dividend Income = $13000 Interest Income =…

Q: Ann is single and works full-time. In 2020, Ann paid child care expenses of $6,000 for someone to…

A:

Q: Marlene, age 52, is not married and has salary income of $210,000 during 2020. She pays for all of…

A: Marlene's regular Taxable Income Particulars Amount ($) Income from Salary 210,000 Income…

Q: Diego, age 28, married Dolores, age 27, in 2019. Their salaries for the year amounted to $80,000 and…

A: Tax liability: When the assessee is earned the income of among any of the sources of income then its…

Q: What is the maximum deductible contribution into a Traditional IRA in 2021?

A: Tax refers to the amount charged by the government on individuals, partnership firms, HUF’s or any…

Q: Barry is a single, 40-year-old software engineer earning $190,000 a year and is not covered by a…

A: IRA- Abbreviation of IRA is Individual Retirement Account which is used as an investing tool that…

Q: Gene, age 34, and Beth, age 32, have been married for nine years. Gene, who is a college student,…

A: Concept used : The maximum amount to contribute to an IRA in 2020 is $6,000 and if the earned income…

Q: Shellie, a single individual, received her Bachelor’s degree in 2019, and took a job with a salary…

A: SOLUTION- ACCORDING TO SECTION 80 E   IF YOU HAVE TAKEN AN EDUCATION LOAN TO FUND YOUR HIGHER…

Q: Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2020). In 2020, her…

A: SEP IRA - it is a Simplified Employee Pension Individual Retirement Arrangement adopted by business…

Q: Bob is a single, 40-year-old doctor earning $190,000 a year and is not covered by a pension plan at…

A: IRA- Abbreviation of IRA is Individual Retirement Account which is used as an investing tool that…