Final answer:
George cannot take any deduction for an IRA contribution as his MAGI exceeds the phase-out limits for a single taxpayer covered by a retirement plan in 2021.
Step-by-step explanation:
To calculate the maximum regular IRA deduction for George, who is a 24-year-old single taxpayer with a salary of $48,000, dividend income of $14,000, interest income of $4,000, and rental income of $1,000, and is covered by a qualified retirement plan, we need to refer to the IRA contribution limits for the year 2021.
For the tax year 2021, the contribution limit for a traditional IRA for individuals under age 50 was $6,000. However, since George's income exceeds certain thresholds because he is covered by a retirement plan at work, his ability to deduct his contributions may be reduced or phased out. The phase-out range for single filers in 2021 was between $66,000 and $76,000 of modified adjusted gross income (MAGI).
With George's salary and additional income, his MAGI will be significantly over the phase-out limit, thereby reducing the maximum deductible IRA contribution to $0, as his income exceeds the phase-out range for eligible deductions.