Question

Rhonda is single and receives the following income during the year: $30,000 taxable pension, $6,000 in social security payments, and $1,000 of interest on State of Iowa bonds. What is Rhonda's adjusted gross income based on the above information?a. $36,000b. $34,500c. $33,000d. $30,000e. None of the above

Answer 1

Answer:

Rhonda's adjusted gross income = $33,000

so correct option is c. $33,000

Explanation:

given data

taxable pension = $30,000

social security payments = $6,000

interest on State of Iowa bonds = $1,000

to find out

Rhonda's adjusted gross income

solution

we get here Rhonda's adjusted gross income that is express as

adjusted gross income =  Taxable pension + Social security    ....................1

here we know If income is between $25,000 and $34,000 than there is up to 50 % of your benefits may be subject to tax

so here Social security = 50% × $6,000  = $3000

so total adjusted gross income will be

Rhonda's adjusted gross income = $30,000 + $3,000

Rhonda's adjusted gross income = $33,000

so correct option is c. $33,000