Ask Question
BusinessBusiness
4 October, 14:04

Charlie is a single taxpayer with income of $107,000 which includes $22,500 of interest income. Contributions to Coverdell educational savings accounts are phased out between $95,000 and $110,000. What is the maximum contribution Charlie can make to an educational savings account?

+2
Answers (1)
  1. 4 October, 14:32
    0
    Modified Adjusted Gross Income = $107,000

    Income Limit for Contributions = $97,000

    Amount that can be contributed = NIL

    Explanation:

    Charlie is a single taxpayer with income of $107,000 which includes $22,500 of interest income.

    Contributions to Coverdell educational savings accounts are phased out between $95,000 and $110,000.

    What is the maximum contribution Charlie can make to an educational savings account?

    Modified Adjusted Gross Income = $107,000

    Income Limit for Contributions = $97,000

    Amount that can be contributed = NIL

    The IRS states that ''Any individual whose modified adjusted gross income is under the limit set for a given tax year can make contributions.'' hence, Charlie cannot make contributions
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Charlie is a single taxpayer with income of $107,000 which includes $22,500 of interest income. Contributions to Coverdell educational ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Lucy Sportswear manufactures a specialty line of T-shirts using a job-order cost system. During March, the following costs were incurred in completing Job ICU2: direct materials, $13,700; direct labor, $4,800; administrative, $1,400;
Answers (1)
Based on your readings regarding the volume of big data, choose the list that represents the items in the list in terms of general to specific: A. Data Set, Data on the Internet, Big Data, Information in a 1,000-page Research Report B.
Answers (1)
Francis Inc.'s stock has a required rate of return of 10.25%, and it sells for $87.50 per share. The dividend is expected to grow at a constant rate of 6.00% per year. What is the expected year-end dividend, D1
Answers (1)
What is the order in which the three separate management decisions should be completed for HRM managers that design effective compensation systems?
Answers (1)
Suppose there are two states that do not trade: Iowa and Nebraska. Each state produces the same two goods: corn and wheat. For Iowa the opportunity cost of producing 1 bushel of wheat is 3 bushels of corn.
Answers (1)
New Questions in Business
How would you explain sales of a particular menu item dropping off to nothing this month when sales for that item were at the highest they have ever been last month?
Answers (2)
The amounts of time employees at a large corporation work each day are normally distributed, with a mean of 7.77.7 hours and a standard deviation of 0.350.35 hour.
Answers (1)
What would be most likely to happen if there was no Patient's Bill of Rights?
Answers (1)
Paragon Company Alvin, the production manager at the Paragon Company, wants to select the best supplier of raw materials from among several vendors.
Answers (1)
As a general rule what percentage of debt to gdp will make a government bond yields spike
Answers (2)
Home » Business » Charlie is a single taxpayer with income of $107,000 which includes $22,500 of interest income. Contributions to Coverdell educational savings accounts are phased out between $95,000 and $110,000.
Sign Up Forgot Password?