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 the $250,000 in pension payments and the $10,000 of Social Security payments are taxable income, so Bernie must include both amounts in his gross income. Therefore, his gross income is $250,000 + $10,000 = $260,000.

Bernie Is a Former Executive Who Is Retired