Hector and Nicole are retired. During the current year, they receive $11,000 from a qualified pension plan, $3,000 of dividends on common stock holdings, $6,000 of tax-exempt interest, and $10,000 of Social Security benefits. Hector and Nicole's adjusted gross income is:
A)$14,000
B)$19,000
C)$24,000
D)$30,000

Question

Quizplus · Accepted Answer

Adjusted gross income includes taxable income sources. The pension plan ($11,000) and dividends ($3,000) are taxable, totaling $14,000. Tax-exempt interest and Social Security benefits are not included in AGI.

Hector and Nicole Are Retired