Answered

Westonci.ca is the ultimate Q&A platform, offering detailed and reliable answers from a knowledgeable community. Find reliable answers to your questions from a wide community of knowledgeable experts on our user-friendly Q&A platform. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

barbara is a single taxpayer who had a 2022 adjusted gross income of $25,000 and who contributed $4,000 to her traditional ira. assuming she has a $2,000 income tax liability for the year, what is her maximum retirement contribution savings credit?

Sagot :

varshamittal029

The maximum retirement contribution savings credit for Barbara is $200.

Contributions made by individual taxpayers to classic individual retirement accounts (IRAs) are eligible for a tax credit of up to 10%, 20%, or 50% of the taxpayer's total contribution, with a maximum allowable contribution of $2,000.

The minimum and maximum allowed incomes are revised every year.

For persons with an adjusted gross income between $21,501 and $33,000 in 2021, the saver's credit rate is 10%.

In the example of Barbara, the contribution to her regular IRA is equal to $4,000.

The credit that Saver receives is equal to ten per cent of her donation, up to a maximum of two thousand dollars.

The maximum credit for savings contributions to a retirement plan is 10% of $2,000, or $200.

To know more about individual retirement accounts (IRAs)

https://brainly.com/question/28505061

#SPJ4

We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.