Serena is a 38-year-old single taxpayer. She operates a small business on the side as a sole proprietor. Her 2020 Schedule C reports net profits of $15,000. Her employer does not offer health insurance. Serena pays health insurance premiums of $7,800 in 2020. Serena also pays long-term care insurance premiums of $600 in 2020. Calculate Serena's self-employed health care deduction.
Serena is a 38-year-old single taxpayer. She operates a small business on the side as a sole proprietor. Her 2020 Schedule C reports net profits of $15,000. Her employer does not offer health insurance. Serena pays health insurance premiums of $7,800 in 2020. Serena also pays long-term care insurance premiums of $600 in 2020.
Calculate Serena's self-employed health care deduction.
Karen, 28 years old and a single taxpayer, has a salary of $33,000 and rental income of $33,000 for the 2020 calendar tax year. Karen is covered by a pension through her employer. AGI phase-out range for traditional IRA contributions for a single taxpayer who is an active plan participant is $65,000 – $75,000.
What is the maximum amount that Karen may deduct for contributions to her traditional IRA for 2020?
Phil and Linda are 25-year-old newlyweds and file a joint tax return. Linda is covered by a retirement plan at work, but Phil is not.
Assuming Phil's wages were $27,000 and Linda's wages were $18,500 for 2020 and they had no other income, what is the maximum amount of their deduction for contributions to a traditional IRA for 2020?
| Phil | |
| Linda |
b. Assuming Phil's wages were $55,000 and Linda's wages were $70,000 for 2020 and they had no other income, what is the maximum amount of their deduction for contributions to a traditional IRA for 2020?
| Phil | |
| Linda |
What is the maximum amount a 45-year-old taxpayer and 45-year-old spouse can put into a Traditional or Roth IRA for 2020 (assuming they have sufficient earned income, but do not have an income limitation and are not covered by another pension plan)?
What is the maximum amount a 55-year-old taxpayer and 52-year-old spouse can put into a Traditional or Roth IRA for 2020, assuming they earn $70,000 in total and are not participants in pension plans?
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