If Your Adjusted Gross Income Is $30,000 and You Contribute

question 83

Multiple Choice

If your adjusted gross income is $30,000 and you contribute $3,000 to a retirement plan in pretax dollars, then you will pay income tax on a recomputed adjusted gross income of

• A) $33,000.
• B) $30,000.
• C) $27,000.
• D) none of the above.

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Definitions:

Doctrine of Nullification

A political theory asserting that states have the right to nullify or invalidate any federal law deemed unconstitutional or infringing on states' rights, central to pre-Civil War sectional conflicts.

State Sovereignty

The principle that states have the authority to govern themselves, make their own laws, and manage internal affairs without external interference.

President Jackson

Andrew Jackson, the seventh President of the United States, known for his populist policies and for founding the Democratic Party.

Federal Legislation

Laws enacted by the national government of a federal country, such as the United States, that apply to all states and citizens within that country.