During 2017,Lincoln Masters received income dividends of $850 and capital gain distributions of $540.Based on this information:

Question

Quizplus · Accepted Answer

Both income dividends and capital gain distributions must be included as taxable income on an individual's tax return. Income dividends are paid out from the earnings of a mutual fund or stock, and capital gain distributions are the profits from the sale of securities within a mutual fund. Both are considered income by the IRS and are therefore taxable.

During 2017,Lincoln Masters Received Income Dividends of $850 and Capital