Question

Andrew and Eunice are married filing jointly with AGI of $48,000. They contributed $1,800 to a qualified retirement plan. How much is their retirement savings contributions credit?

Answer 1

retirement savings contributions credit = $180

Step-by-step explanation:

given data

AGI = $48,000

contributed amount = $1,800

solution

we know Married taxpayer will file separate returns and they still qualify for the credit

so here retirement savings contributions credit will be 10 % of contributed amount so it will be

retirement savings contributions credit = 10% of $1,800

retirement savings contributions credit = 0.10 × $1,800

retirement savings contributions credit = $180