A calendar-year individual is eligible to contribute to a deductible IRA. The taxpayer obtained a 4-month extension to file until August 15 but did not file the return until November 1. What is the latest date that an IRA contribution can be made in order to qualify as a deduction on the prior year’s return? October 15. April 15. August 15. November 1.
Added by Amy H.
Step 1
A traditional IRA contribution for a given tax year must be made by the due date of the tax return, including extensions, to be deductible for that year. Show more…
Show all steps
Your feedback will help us improve your experience
Adi S and 60 other Principles of Accounting educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Recommended Videos
Adi S.
John Lake is a single, individual taxpayer. Lake is the sole owner of Kale, Inc., an S corporation with a November 30 year end. Lake had a $500 overpayment in Year 2 that was applied to the Year 3 tax liability. Lake pays estimated taxes. Lake's Year 3 estimated tax based on Year 2 income was $1,600. Kale files Form 1120S. U.S. Income Tax Return for an S Corporation. Select from the option list provided the applicable date for each scenario below. Each choice may be used once, more than once, or not at all. For question 5., enter the appropriate amount in the associated cell. Enter the amount as a positive whole number. If the amount is zero, enter a zero (0). 1. What is the due date for Kale's Year 2 Form 1120S? February 15, Year 3 2. When is the final date Lake can contribute to his IRA for Year 2? April 15, Year 3 3. What is the latest date Lake can pay any Year 2 income tax due without interest? 4. When is the earliest date Lake is required to make an estimated tax payment for Year 3 after the Year 2 overpayment is applied? 5. What is the amount of Lake's first estimated tax payment after the Year 2 overpayment is applied? 6. If Lake elects to file an extension on the individual Year 2 return, what would be the due date? 7. During Year 4, Lake presented new information about his Year 1 Form 1040, which would result in a refund. Assuming the return was filed by the original due date, what is the latest date Lake can file an amended Year 1 return and still receive the refund?
Akash M.
Ms. Ray is age 46 and single. Her employer made a $2,895 contribution to her qualified profit-sharing plan account, and she made the maximum contribution to her traditional IRA. Compute her IRA deduction if: a. Ms. Ray's $50,000 salary is her only income item. b. Ms. Ray's $68,250 salary is her only income item. c. Ms. Ray's $68,250 salary and $7,970 dividend income are her only income items. Assume the taxable year is 2018.
Rashmi S.
Recommended Textbooks
Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD