Ch. 5: Gross Income from Employment

Question 1

What is the Social Security Base Amount and Adjusted Base Amount for Single Filing?

Answer 1

Base: $25,000
Adjusted Base: $34,000

Question 2

What is the Social Security Base Amount and Adjusted Base Amount for Married Filing Jointly (MFJ)?

Answer 2

Base: $32,000
Adjusted Base: $44,000

Question 3

What is the Social Security Base Amount and Adjusted Base Amount for Married Filing Separately?

Answer 3

Base: $0
Adjusted Base: $0

Question 4

What are the amounts that are added into Formula 4 of Social Security Taxation calculation?

Answer 4

Single: $4,500
MFJ: $6,000
Married Filing Separate : $0

Question 5

What kind of income does exercising an ISO result in?

Answer 5

capital gain

Question 6

What kind of income does exercising a NQSO result in?

Answer 6

Ordinary Income (W2)

Question 7

What are the Deductible Thresholds and Phaseouts for Traditional IRAs for a Single Taxpayer?

Answer 7

$68,000 - $78,000

Question 8

What are the Deductible Thresholds and Phaseouts for Traditional IRAs for a MFJ Taxpayer?

Answer 8

$109,000 - $129,000

Question 9

What are the Deductible Thresholds and Phaseouts for Traditional IRAs when one spouse is an active participant, while the other is not?

Answer 9

The spouse who is not an active participant may have a deductible traditional IRA contribution as long as their joint AGI does not exceed $214,000.

The deductible IRA contribution for the non-active participants spouse is phased out between $204,000 - $214,000.

Question 10

At what age can a taxpayer make “catch-up IRA contributions?” And what is the additional amount?

Answer 10

Age 50 and an additional $1,000.