Kathy and Patrick Are Married with Salaries of $28,000 and $21,000

question 31

Short Answer

Kathy and Patrick are married with salaries of $28,000 and $21,000, respectively. Adjusted gross income on their jointly filed tax return is $54,000. Both individuals are active participants in employer provided qualified pension plans. What are Kathy and Patrick's maximum combined IRA contribution and deduction amounts? Contribution Deduction

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Definitions:

Negotiable Instrument

An instrument in writing that, when transferred in good faith and for value without notice of defects, passes a good title to the instrument to the transferee.

Contract of Carriage

An agreement between a carrier and a shipper for the transport of goods or passengers.

Title Document

Legal paperwork that proves ownership of a particular asset, such as real estate or a vehicle.

Special Import Measures Act

Legislation aimed at providing protection to Canadian industries against unfair trade practices such as dumping and subsidization by foreign companies.