Ona is a retired schoolteacher who receives a pension of $800 per month (Ona made no payments into the pension plan) and $2,000 of Social Security benefits per month. Ona's adjusted gross income is:

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Quizplus · Accepted Answer

Ona's adjusted gross income is $9,600. This is because her pension is not taxable, and her Social Security benefits are only taxable up to 85%. So, her taxable income is $2,000 x 85% = $1,700. Her adjusted gross income is then $1,700 + $800 = $9,600.

Ona Is a Retired Schoolteacher Who Receives a Pension of $800