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Iteru [2.4K]
2 years ago
10

Gretchen made $56,750 last year. She paid $1,200 in student loan interest

Mathematics
2 answers:
pochemuha2 years ago
7 0

Answer:

B) AGI

Step-by-step explanation:

<u>Definitions</u>

  • IRA (Individual Retirement Account)
  • Standard Deduction: the portion of income not subject to tax that can be used to reduce your tax bill
  • AGI (Adjusted Gross Income): gross income <u>minus</u> certain <u>adjustments</u>, such as business expenses, student loan interest payments, IRA and other expenses.
  • Gross income: total income from <u>all</u> sources, including returns, discounts, and allowances, <u>before</u> deducting any expenses or taxes
  • Taxable income: money <u>earned</u> which is <u>subject to taxation</u> by federal or state authorities.

So as Gretchen has subtracted adjustments of student loan interest and IRA contributions from her gross income, the remaining amount is the AGI.

iVinArrow [24]2 years ago
3 0

Answer:

It's supposed to be Adjustments, but it's not on here so it's D.

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