Kerry is single and has AGI of $25,000 in 2018. During the year he contributes $5,000 to his Roth IRA. What is the amount of qualified retirement savings contributions credit to which he is entitled?
A) $200
B) $400
C) $800
D) $1,000
A) $200
For a single person with AGI over $20,500 but not over $31,500, the applicable percentage credit is 10%. The maximum amount on which to compute the credit is $2,000. Therefore, Kerry's credit is $2,000 × .10 = $200.
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