Wilson and Joan, Both in Their 30s, File a Joint

question 8

Essay

Wilson and Joan, both in their 30s, file a joint income tax return for 2018.Wilson's wages are $15,000 and Joan's wages are $23,000 for the year.Their total adjusted gross income is $38,000, and Joan is covered by a qualified pension plan at work but Wilson is not.
a.​What is the maximum amount that Wilson and Joan may each deduct for contributions to their traditional individual retirement accounts?
b.​​If Joan's wages are $88,000 for 2018, instead of $23,000, and their adjusted gross income is $103,000, what is the maximum amount that Wilson and Joan may each deduct for contributions to their traditional individual retirement accounts?

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Definitions:

Mean Square

A measure used in variance and regression analysis, representing the sum of squared deviations divided by the degrees of freedom.

One-Way ANOVA

A statistical test used to determine if there are statistically significant differences between the means of three or more independent groups.

Population Variances

A measure of the dispersion or spread of a set of values in a population, reflecting how much the values differ from the population mean.

One-Way ANOVA

A statistical test that compares the means of three or more independent samples to determine if at least one sample mean significantly differs from the others.