Calculate the maximum amount that Megan can deduct for contributions to a defined contribution Keogh plan.

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter11: Individuals As Employees And Proprietors
Section: Chapter Questions
Problem 35P
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PLEASE SHOW ALL WORK SO I CAN FOLLOW ALONG! THANK YOU SO MUCH! 56,000 IS NOT THE ANSWER. I REPEAT 56,000 IS NOT THE ANSWER. I HAVE SEEN THIS ANSWER BEFORE. PLEASE DO NOT GIVE ME 56,000 BECAUSE IT IS NOT CORRECT.

 

In 2021, Megan's sole proprietorship earns $300,000 of self-employment net income (after the deduction for one-half of self-employment
tax).
Calculate the maximum amount that Megan can deduct for contributions to a defined contribution Keogh plan.
56,000 X
Transcribed Image Text:In 2021, Megan's sole proprietorship earns $300,000 of self-employment net income (after the deduction for one-half of self-employment tax). Calculate the maximum amount that Megan can deduct for contributions to a defined contribution Keogh plan. 56,000 X
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