Heloise,age 74 and a Widow,is Claimed as a Dependent by Her

question 185

Essay

Heloise,age 74 and a widow,is claimed as a dependent by her daughter.For 2016,she had income as follows: $2,500 interest on municipal bonds;$3,200 Social Security benefits;$3,000 income from a part-time job;and $2,800 dividends on stock investments.What is Heloise's taxable income for 2016?

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Definitions:

Annual Return

The percentage of gain or loss on an investment over a one-year period, taking into account both capital gains and dividends.

Retirement Fund

Financial resources that have been saved and are used to support a person's retirement.

Mutual Fund

An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments.

Compounded Monthly

The method of determining interest that includes both the original principal sum and the interest that has previously been added up over past months.