Will Works for Micro Lance Computer Company and Participates in Its

question 131

Multiple Choice

Will works for Micro Lance Computer Company and participates in its thrift and savings plan.For every $1.00 Will contributes to the plan,up to 5 percent of his salary,the company contributes $0.25.If Will's salary is $40,000 and he decides to maximize the matching contributions,how much will be contributed to Will's plan in a year by both the employer and Will?

• A)$4,000
• B)$3,500
• C)$2,500
• D)$2,000
• E)$1,000

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Definitions:

Single

A filing status for unmarried taxpayers who do not qualify for any other filing status on their tax return.

American Opportunity Tax Credit

A refund for allowable educational fees paid for a qualifying scholar during their first four years of advanced education.

Qualifying Expenses

Specific expenses that meet criteria set by tax laws or other regulations for deduction or special treatment.

AGI

Adjusted Gross Income, calculated by taking gross income and subtracting specific deductions. It's used to determine taxable income and eligibility for certain tax credits and deductions.