Based on the joint tax return filed by Gail and Bob, and the amount deferred, the amount of contribution savings credit is $2,000
How to find the amount deferred?
The amount that both Gail and Bob contributed was the total amount that they deferred to their employer's 401(k) plan.
This means that the total contribution was:
= 2,000 + 2,000
= $4,000
Tax laws state that when people are married and file a joint tax return, and have an AGI of nor more than $36,500, their contribution savings credit is 50% of their contribution:
= 50% x 40,000
= $2,000
Find out more on contribution savings credit at https://brainly.com/question/25509749
#SPJ1
