Ch. 6 : Introduction to Deductions

Question 1

What are the Student Loan Deductible Phaseouts for Single, MFJ and MFS

Answer 1

Single : $70,000 - $85,000
MFJ : $145,000 - $175,000
MFS : $0

Question 2

Requirements to qualify as Alimony payments

Answer 2

1. payments must be in cash
2. payments must be required by court decree
3. the court decree must not specify payments as “not alimony”
4. payments must cease at death of recipient
5. payments can not be child support
6. spouses may not be members of the same household
7. both parties may not file joint income (MFJ)

Question 3

Deductibility threshold for traditional IRA contributions for a non-active participant spouse

Answer 3

$204,000 - $214,000

Question 4

Traditional IRA Contributions Deductible Threshold and Phaseout for Single

Answer 4

$68,000 - $78,000

Question 5

Traditional IRA Contributions Deductible Threshold and Phaseout for MFJ

Answer 5

$109,000 - 129,000

Question 6

What is the Phaseout Range for deductible IRA contributions for SINGLE tax-payer?

Answer 6

$10,000

Question 7

What is the Phaseout Range for deductible IRA contributions for MFJ taxpayers?

Answer 7

$20,000

Question 8

What is the calculation for IRA contribution deduction when income falls between the threshold and phaseout?

Answer 8

Reduction to Deductable IRA Contribution =

Contribution Limit
*
(AGI - Income Threshold ) / Phaseout Range.

EXAMPLE:
SINGLE
6000 * (73K - 68K) / 10K = 3K