 | Traditional IRA: How Much Can You Contribute and Deduct in 2004?
Worksheet F-A
Use this worksheet if you have less than $3,000 in taxable
compensation for the year and do not file your federal income tax
return as married filing jointly.
1. Enter your taxable compensation for the
year.
- Taxable compensation includes wages, salaries,
commissions, self-employment income, and taxable alimony
or separate maintenance.
- Do not include earnings and profits from property
(rent, interest, dividends).
- Do not include your spouse's taxable
compensation.
- Do not reduce your taxable compensation by any losses
from self-employment.
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$_______ |
2. Enter the lesser of line (1) or $3,000
- This is the total amount that you can contribute to
your traditional IRA for the year if you are under age
50.
- If you are age 50 or older, you may add an additional
$500 "catch-up" contribution to your allowable
contribution amount.
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$_______ |
The amount above represents the maximum contribution that you
can make to your traditional IRA for the year. Some, all, or none
of this contribution amount may be tax deductible on your federal
income tax return. To determine what portion of your contribution
is tax deductible (if any), go to
Step Two: How Much Can You
Deduct?
Caution:
The amount above represents the total amount that you can
contribute to all of your IRAs (traditional and Roth) for the
year. If your total contribution to all of your IRAs exceeds
this amount, you will be subject to a federal excess
contribution penalty.
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