Question

Zina Balaskas (57) is single and earned $3,250 in wages. Because she has a large amount of investment income, she would like to contribute and deduct the largest allowable IRA amount to help reduce her tax liability. She has not yet made a contribution, but will do so before the due date of her return. Zina's maximum traditional IRA deduction is $_____________. $0

Answer 1

Zina's maximum traditional IRA deduction is $3,250.

She could have been entitled to $7,000 since she is 57 if her earnings were more than $3,250.

If Zina is less than 50 years, the maximum deduction for the traditional IRA is $6,000.

Contributions made to traditional IRA are not taxable during the years of contribution.  This is why they are tax-deductible.

Thus, based on Zina's income, the maximum traditional IRA deduction is only $3,250.

Read more about traditional IRA deduction limits at brainly.com/question/2108625