Answer: Alexis and Ashton's retirement savings contributions credit is $150.
Step-by-step explanation:
AGI up to $39,000: 50% credit rate
AGI $39,001 - $42,500: 20% credit rate
AGI $42,501 - $65,000: 10% credit rate
Since Alexis and Ashton's AGI is $45,000, they fall into the 10% credit rate category. However, the credit rate applies to the contribution made up to a certain limit. For 2023, the limits are:
Married filing jointly: $4,000 contribution limit
In this case, Alexis and Ashton contributed $1,500, which is less than the contribution limit. Therefore, their credit will be based on the 10% credit rate.
To calculate their retirement savings contributions credit, we multiply their contribution by the credit rate:
$1,500 (contribution) * 10% (credit rate) = $150
Therefore, Alexis and Ashton's retirement savings contributions credit is $150.