 | Traditional IRA: How Much Can You Contribute and Deduct in 2004?
Worksheet F-C
Use this worksheet only if you are covered by an
employer-sponsored retirement plan.
| If your filing status is: |
Enter on line (1) below:
|
|
Single or head of household
|
$45,000
|
|
Married filing jointly or qualifying widow(er)
|
$65,000
|
|
Married filing separately
|
$0
|
Caution:
If you are married, did not live with your spouse at any time
during the year, and file separate income tax returns, you
are considered a single taxpayer for purposes of determining
the tax-deductible portion of your traditional IRA
contribution.
Note:
Certain low- and middle-income taxpayers may also be eligible
for a partial income tax credit for contributing to an IRA
(traditional or Roth). If you qualify for such a credit, it
is in addition to any income tax deduction you might receive
for making the contribution.
|
1. Enter the appropriate amount from the table above
(the "applicable amount").
|
$________
|
|
2. Enter your modified adjusted gross income.
- This represents the total income shown on the
"adjusted gross income (AGI)" line of your federal
income tax return, minus (or not including) the
taxable amount of your Social Security benefits, plus
income that is normally not included in AGI (such as
foreign earned income, qualified U.S. savings bond
income used to pay for higher education, and
tax-exempt interest income).
- If your filing status is married filing jointly,
this number represents the combined modified adjusted
gross income of you and your spouse.
- If this amount is equal to or less than the
amount on line (1), stop here. You can deduct the
full amount of your traditional IRA
contribution.
|
$________
|
|
3. Subtract line (1) from line (2).
- If this amount is $10,000 or more, stop here. You
cannot deduct any portion of your traditional IRA
contribution.
|
$________
|
|
4. Enter the maximum deductible amount for 2004.
- If you are under age 50, enter $3,000 here as the
maximum deductible amount. If you are age 50 or
older, enter $3,500.
|
$________
|
|
5. Enter the amount by which your traditional IRA
deduction is reduced, calculated as follows:
Amount on Line (4) x
(Amount on Line (2) - Amount on Line (1))
$10,000
- If this amount is not a multiple of $10, reduce
to the next lowest multiple of $10 (e.g., reduce $858
to $850).
|
$________
|
|
6. Subtract line (5) from line (4).
- If this amount is less than $200 (but greater
than $0), enter $200.
|
$________
|
7. Enter the maximum amount that you can
contribute to a traditional IRA for 2004.
- This amount is equal to the lesser of $3,000
($3,500 if age 50 or older) or 100 percent of your
taxable compensation for the year.
- If you did not have at least $3,000 in taxable
compensation for the year, see
Amount You Can
Contribute
.
|
$________
|
8. Allowable deductible contribution:
Enter the smaller of line (6) or line (7).
- This is the maximum deductible contribution that
you can make to your traditional IRA for 2004.
|
$________
|
|
9. Nondeductible contribution: Subtract line (8)
from line (7).
- This is the portion of your traditional IRA
contribution that you cannot deduct on your 2004
federal income tax return.
- If this amount is zero, all of your contribution
is deductible.
|
$________
|
| |
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