00:02
The options are given to us.
00:04
So we have to choose and write the correct one thomas can deduct a portion of his 2023 ira contribution based on his adjusted gross income.
00:12
That is a gi and tax filling status.
00:15
So to calculate the deductible amount, we need to consider the ira contribution limits and phase out ranges.
00:22
So for 2023, the maximum deductible ira contribution is contribution is $6 ,500 for individuals under the age of 50.
00:42
So in thomas case is a gi is $76 ,000.
00:55
So however, thomas is an active participant in his employers qualified retirement plan.
01:00
This means that his is he is subject to the ira deductible phase out ring.
01:05
So for a single taxpayer who is an active participant in an employer's retirement plan in 2023, the phase out range for ira deductions starts at an agi of $66 ,000 and ends at $76 ,000.
01:21
So here's how to calculate the deductible amount first.
01:23
We need to determine the portion of thomas agi within the phase out range.
01:29
So deductible agi is equal to agi subtracted from lower limit of phase out range...