Kyle is 31 years old, single, self-employed, and has no qualified pension plan. His net self-employment income is $35,000 and he contributes the maximum amount to his IRA account during the current year. How much can Kyle deduct for AGI this year?
A)$- 0 -
B)$1,500
C)$3,000
D)$4,000
E)$5,500

Question

Quizplus · Accepted Answer

For the tax year in question, individuals under the age of 50 can contribute and deduct up to $5,500 to their IRA if they have sufficient earned income, which Kyle does. Since he is self-employed with no pension plan and has enough income, he can fully contribute and deduct the $5,500 for his IRA contribution.

Kyle Is 31 Years Old, Single, Self-Employed, and Has No