Reference no: EM132479700

Question 1: In 2017, Tom and Darla, a married couple, were employed all year. They each worked for only one employer the entire year. Tom paid Social Security taxes (SST) in the amount of $4,373, and Darla paid $8,188.80. What is the amount of their excess SST which they can claim as a credit?

Option a) $4,675.40

Option b) $ 302.40

Option c) $ 0.00

Option d) $841.80

Question 2: Steve (age 55) and May (age 48) are married and will file a joint return. Steve is an elementary school teacher, and May is unemployed. During the year, Steve contributed $6,500 to his traditional IRA and May contributed $5,500 to her traditional IRA. Steve had wages $10,500 for the year. Steve also received $8,500 unemployment compensation during the year. They also have $1,580 interest income and $3,560 in dividend income. What would the couple's IRA deduction be for the tax year?

Option a) $12,000

Option b) $11,000

Option c) $ 6,500

Option d) $10,500