R2-M1 Flashcards
Individual taxation
1
Q
Allowable amount of IRA deduction
A
Lessor of: $5,500 or individual’s compensation
- $11,000 for MFJ
- only deductible up to amt contributed
2
Q
No IRA dedction if:
A
1) Rich (AGI > 62,000 or 99,000 MFJ)
2) In a retirement plan (husband and wife test separately unless “super rich”)
3
Q
Deductible student interest
A
- Limited to $2,500
- Phased-out after $65,000
- Deductible for as long as interest is being paid
4
Q
Moving expenses deduction
A
- New workplace is 50 miles further commute
- Only direct moving costs (travel and lodging)
5
Q
Keogh plan deductions
A
Lesser of:
-keogh deduction and deducting 1/2 of self-employment tax (20% net SE earnings before keogh- 50% SE tax)
OR -$54,000
6
Q
Deductions FOR AGI
A
- IRA
- Student loan expenses
- Moving expenses
- one half of self employment (FICA) taxes
- self-employment health insurance
- alimony paid
- penalties on early withdrawls
