Which of the following statements is CORRECT regarding a spousal IRA? a- A spouse may be eligible to contribute to an IRA even if they have no income of their own. b- A spousal IRA is allowed for any filing status. c- The limitation on the amount that can be contributed to a spousal IRA is always the same as that of the working spouse. d- The taxpayer's income is not taken into consideration when establishing a spousal IRA.

Which of the following statements is CORRECT regarding a spousal IRA? a- A spouse may be eligible to contribute to an IRA even if they have no income of their own. b- A spousal IRA is allowed for any filing status. c- The limitation on the amount that can be contributed to a spousal IRA is always the same as that of the working spouse. d- The taxpayer's income is not taken into consideration when establishing a spousal IRA.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter3: Computing The Tax

Section: Chapter Questions

Problem 5DQ

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Similar questions

Which of the following statements about traditional IRAs is TRUE? Taxable investment income, such as interest, dividends, and capital gains, will qualify as compensation for the purpose of contributing to an IRA. Taxpayers who participate in an employer-sponsored retirement plan are prohibited from contributing to an IRA. Taxpayers with a timely-filed extension have until October 15 of the tax year to establish and contribute to an IRA. Taxpayers have until the due date of the return (not including extensions) to reduce their tax liability by contributing to an IRA.
Which of the following is true about the self-employed health insurance deduction? The deduction can be claimed when a subsidized employer health insurance plan is also available. The deduction can be claimed if the taxpayer has an overall business loss from self-employment. Long-term care premiums may not be deducted within specified dollar limitations based on age. The self-employed health insurance deduction is a for AGI deduction. Dental insurance is not included as deductible self-employed health insurance.
Which of the following is true about the self-employed health insurance deduction? a.The deduction can be claimed when a subsidized employer health insurance plan is also available. b.Long-term care premiums may not be deducted within specified dollar limitations based on age. c.Dental insurance is not included as deductible self-employed health insurance. d.The deduction can be claimed if the taxpayer has an overall business loss from self-employment. e.The self-employed health insurance deduction is a for AGI deduction.
1
With respect to spousal and child support, which of the following statements is NOT correct. A) Any amounts that are not specifically identified in the agreement as spousal support will be considered child support. B) An amount qualifies as a support payment only if it is payable or receivable on a periodic basis. C) The recipient of child support payments will include this amount in income. D) Deductible support payments reduce the taxpayer's Earned Income for RRSP purposes.
Which of the following does not have a legitimate insurable interest? A) An individual on the life of his mistress B) An individual on his own life C) An individual on the life of his spouse D) A finance company on the life of its borrower
Which of the following statements concerning contributions to traditional IRAS is correct? (A) Contributions may be used to buy life insurance policies. (B) Contributions may be deductible or nondeductible. (C) Contributions may be commingled with a taxpayer's other assets. (D) The maximum contribution is 25 percent of the taxpayer's income.
Select all of the following that qualify as Exclusions from Income that can be excluded in determining Gross Income. Gifts Inheritances Pensions Proceeds from Life Insurance Wages Workers Compensation Benefits Dividends Alimony Forgiven Debts
Which Schedule must the taxpayer use to claim a payment made for alimony? Multiple Choice Schedule 1. Schedule 2. Schedule 3. The taxpayer does not need to use a Schedule.
TRUE OR FALSE: A Registered Retirement Savings Plan is considered to be a spousal Registered Retirement Savings Plan if a spouse or common-law partner has made any contributions to the plan at any time since its inception.
The following are exclusions from gross income, except Proceeds of life insurance policies. Retirement benefits. Prizes and winnings. Gifts, bequests and devises.
In choosing between taking the standard deduction and itemizing deductions from AGI, what effect, if any, does each of the following have? a. The age of the taxpayer(s). b. The health (i.e., physical condition) of the taxpayer. c. Whether taxpayers rent or own their residence. d. Taxpayers filing status (e.g., single, married, filing jointly). e. Whether married taxpayers decide to file separate returns. f. The taxpayers uninsured personal residence was recently destroyed by a wildfire (the region was declared a disaster area by the Federal government). g. The number of dependents the taxpayer can claim.