Modified Adjusted Gross Income Agi
Question: How can I reduce my modified adjusted gross income in order to qualify for a Roth IRA?
For 2009, I plan on making $140K. I’d like to contribute to a Roth IRA, but that requires a modified AGI < 105K (full contribution), or < 120K (limited contribution). I will fully invest in a 401k plan, which brings the modified AGI to 124K. I don't believe I would qualify for pre tax traditional IRA (I'm single). I think the 2009 health savings account contribution limit is 3K, and I'd prefer not contributing to a health saving account. Are there any other ways to reduce my modified AGI? I don't have any kids. Thanks
Answer: I would make a non deductible contribution to a traditional IRA and then convert it to a Roth in 2010 when income limits will be lifted for Roth IRAs.
To reduce income you could sell stocks you have losses in.
Phillips: Sales tax break doesn’t apply to all car buyers
Q: I understand we can deduct sales tax on any vehicle purchased in 2009 up to $40K. Before I begin figuring taxes, are Tennesseans able to also deduct this extra tax since we already can deduct “regular” sales tax? If not, can the auto sales tax be included elsewhere on our return? Finally, does this amount come off the adjusted income or the percentage tax rate under which we fall?
Tax Deduction Tips & Advice : How to Claim Medical Deductions
