Question: QUESTION Ms. Green is single and over 65 years old. She received the following income in the current year: Interest from certificates of deposit $3,000
QUESTION
Ms. Green is single and over 65 years old. She received the following income in the current year:
| Interest from certificates of deposit | $3,000 |
| Tax-exempt interest | 6,000 |
| Taxable dividends | 5,000 |
| Taxable pension | 20,000 |
| Wages from consulting work | 9,000 |
| Social security benefits | 14,000 |
She did not have any adjustments (above the line deductions) to her income. What is the taxable amount of Ms. Green's social security benefits?
| a. | $7,000 | |
| b. | $9,000 | |
| c. | $11,900 | |
| d. | $14,000 | |
| e. | $18,000
|
QUESTION
On January 1, 2014, Tammy, a vice-president of Toledo National Bank (TNB), was transferred to France to work in a French subsidiary of TNB. Tammy stayed in France for the entire year and was paid a salary of $74,500. She also had interest income of $24,000 from U.S. savings accounts. Tammy's U.S. gross income for the year is:
| a. | $0 | |
| b. | $24,000 | |
| c. | $74,500 | |
| d. | $98,500 |
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