If Kevin's gross income is $45,942 and he makes adjustments totaling $7,956, what is his adjusted gross income?

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Prepare for the Paying Taxes Test. Use flashcards and multiple choice questions, each with hints and explanations. Be exam-ready!

Multiple Choice

If Kevin's gross income is $45,942 and he makes adjustments totaling $7,956, what is his adjusted gross income?

To determine Kevin's adjusted gross income (AGI), you start with his gross income and subtract any adjustments he may have. Kevin's gross income is $45,942, and he has adjustments amounting to $7,956.

To calculate his AGI, you perform the following operation:

Adjusted Gross Income = Gross Income - Adjustments

Adjusted Gross Income = $45,942 - $7,956

Adjusted Gross Income = $37,986

This calculation reflects the process used to arrive at AGI, which is important because AGI serves as a basis for determining eligibility for various tax credits and deductions. Therefore, from the given options, the correct choice – representing Kevin's adjusted gross income – is $37,986.

If Kevin's gross income is $45,942 and he makes adjustments totaling $7,956, what is his adjusted gross income?

Prepare for the Paying Taxes Test. Use flashcards and multiple choice questions, each with hints and explanations. Be exam-ready!

If Kevin's gross income is $45,942 and he makes adjustments totaling $7,956, what is his adjusted gross income?

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