Bernie is a former executive who is retired. This year Bernie received $250,000 in pension payments and $10,000 of social security payments. What amount must Bernie include in his gross income?

Question

Quizplus · Accepted Answer

Both pension payments and social security payments are taxable, therefore Bernie must include the full amount of $250,000 + $10,000 = $260,000 in his gross income. However, he may be able to deduct certain expenses related to his pension payments, such as investment fees or advisor fees.

Bernie Is a Former Executive Who Is Retired