You are a 71 year old who does not work. For the tax year 2020, you received the following: • $3,540 Dividend Income $2,563 Interest Income $1,278 U.S. Savings Bond interest • $7,500 Social Security benefits Is this your adjusted gross income? $7,381

You are a 71 year old who does not work. For the tax year 2020, you received the following: • $3,540 Dividend Income $2,563 Interest Income $1,278 U.S. Savings Bond interest • $7,500 Social Security benefits Is this your adjusted gross income? $7,381

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter7: Tax Credits

Section: Chapter Questions

Problem 12MCQ

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

Kk2.

You are a 71 year old who does not work.
For the tax year 2020, you received the following:
$3,540 Dividend Income
$2,563 Interest Income
$1,278 U.S. Savings Bond interest
$7,500 Social Security benefits
Is this your adjusted gross income?
●
$7,381

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