Which of the Following Taxpayers Qualifies for the Maximum Individual

question 52

Multiple Choice

Which of the following taxpayers qualifies for the maximum individual retirement account deduction for 2013?

• A)Married taxpayers,neither of whom is covered by a qualified retirement plan,with total adjusted gross income,all earned,of $85,000
• B)A single taxpayer,who is covered by a qualified retirement plan,with adjusted gross income of $80,000
• C)A single taxpayer,who is not covered by a qualified retirement plan,with no earned income but with unearned income of $12,000
• D)Married taxpayers,only one of whom is covered by a qualified retirement plan,with total adjusted gross income of $190,000
• E)None of the above qualify for the maximum deduction

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Definitions:

Lump Sum Payment

A lump sum payment is a large payment made in one single payment instead of broken down into installments.

Leisure

Time spent away from work and essential domestic activities, often used for relaxation, recreation, or other personal interests.

Leisure

Time available for ease, relaxation, and activities one chooses to engage in beyond compulsory activities like work or chores.

Consumption

The use of goods and services by households or individuals, constituting one of the primary components of economic activity.