- 3 - conservatorship proceedings in the Nebraska county courts; and fees assessed in prosecution actions related to city ordinances regulating non-moving traffic violations. On their 1992 Federal income tax return (the 1992 return), petitioners reported gross income of $73,505.46 and adjusted gross income of $71,161.85. The income so reported consists primarily of petitioner's salary as a Nebraska district court judge. Mary Fuhrman was unemployed and received no compensation during 1992. On the Form W-2 provided to petitioner by the State of Nebraska and attached to the 1992 return, there is an "X" in the box for pension plan. During 1992, petitioner contributed $2,250 to individual retirement accounts (IRA's) described in section 408. On the 1992 return, petitioners claimed a deduction of $2,250 for the contributions to the IRA's. In the notice of deficiency, respondent disallowed the IRA deduction and provided the following explanation: We didn't allow your deduction for IRA contributions because you were covered by a retirement plan at work * * *, and your "modified adjusted gross income" is more that $50,000 * * *. Discussion As a general rule, a taxpayer is entitled to deduct amounts contributed to an IRA. Sec. 219(a); sec. 1.219-1(a), Income Tax Regs. For a married individual filing a joint return, the deduction in any taxable year may not exceed the lesser of $2,250 or an amount equal to the compensation includable in thePage: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011