What amount would the IRA deduction be for the year

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Question 1: Tom's Tier II Railroad Retirement benefits are reported on Form RRB-1099-R. Which of the following would be an exception to the facts Tom's tax preparer must know to calculate the taxable amount of Tier II Railroad Retirement benefits using the Simplified Method?

Option a) The age at which the taxpayer started drawing retirement

Option b) The number of payments received in the year

Option c) How much has been recovered tax-free since 1986

Option d) The current age of the taxpayer

Question 2: Jack (age 45) and Jill (age 42) are married, and their filing status is Married Filing Jointly. Jack is an engineer and Jill is a housemaker. During 2017, Jack had wages of $115,000 and was covered by a retirement plan at work. They also had interest income of $2,850 and dividend income of $8,580. Jack contributed $5,500 to his traditional IRA account. Jill contributed $3,500 to her traditional account and $2,000 to her Roth IRA account. What amount would their IRA deduction be for the year?

Option a) $11,000

Option b) $ 9,000

Option c) $ 5,500

Option d) $ 3,500

Reference no: EM132479705

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