Karl has the following income (loss)during the current year:

What is Karl's adjusted gross income for this year?

Question

Karl has the following income (loss)during the current year:
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What is Karl's adjusted gross income for this year?

Quizplus · Accepted Answer

Adjusted gross income is calculated by subtracting above the line deductions from total income. In this case, Karl has only one above the line deduction of $1,000 for his IRA contribution, which reduces his total income of $33,500 down to an adjusted gross income of $32,500 (Option C).

Karl Has the Following Income (Loss)during the Current Year