PRINCIPLES OF TAXATION F/BUS...(LL)
23rd Edition
ISBN: 9781260433197
Author: Jones
Publisher: MCG
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Chapter 17, Problem 8AP
Mr. and Mrs. Nester had the following items of financial support this year.
Both pensions were paid by a qualified defined-benefit plan. Compute Mr. and Mrs. Nester’s AGI.
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Rafael and Lucy, married taxpayers, each contribute $2,900 to their respective § 401(k) plans offered through their employers. The AGI
reported on the couple's joint return is $42,000. Determine their credit for retirement plan contributions (the Saver's Credit).
Click here to access the "Saver's" Credit Rate and AGI Thresholds Table.
As a result, they may claim a credit for their retirement plan contributions of $
Mr. and Mrs. Nester had the following items of financial support this year:
Social Security benefits
Dividends and interest
Pension from Mr. Nester's former employer
Pension from Mrs. Nester's former employer
$ 26,890
78,600
28, 200
34,700
Required:
Both pensions were paid by a qualified defined-benefit plan. Assume the taxable year is 2023. Compute Mr. and Mrs. Nester's AGI.
Note: Round your intermediate calculations to the nearest whole dollar amount.
Mr. and Mrs. Nester's AGI
A married couple received $9,200 of social security benefits.
a. Calculate the taxable amount of those benefits if the couple's provisional income is $20,500.
b. Calculate the taxable amount of those benefits if the couple's provisional income is $38,000.
c. Calculate the taxable amount of those benefits if the couple's provisional income is $56,000.
Chapter 17 Solutions
PRINCIPLES OF TAXATION F/BUS...(LL)
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