McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 61

Desmond is 25 years old and he participates in his employer's 401(k) plan.During the year, he contributed $3,000 to his 401(k) account.What is Desmond's 2011 saver's credit in each of the following alternative scenarios?
a.Desmond is not married and has no dependents.His AGI after deducting his 401(k) contribution is $30,000
b.Desmond is not married and has no dependents.His AGI after deducting his 401(k) contribution is $17,500.c.Desmond files as a head of household and has AGI of $39,000.d.Desmond and his wife file jointly and report an AGI of $30,000 for the year.