janice and jarrod are married and live in a community property state. janice is not employed outside the home, and jarrod earns a salary of $98,000. during the year, they earned $2,000 on investments that are owned jointly. the investments were made after they were married, with money earned by jarrod. how is the gross income treated for federal income tax purposes? multiple choice question.

Janice and Jarrod are married and live in a community property state. Janice is not employed outside the home, and Jarrod earns a salary of $98,000. during the year, they earned $2,000 on investments that are owned jointly. Janice is deemed to have earned $50000 and Jarrod is deemed to have earned $50000 is how the gross income is treated for federal income tax purposes

This is further explained below.

What is income tax?

Generally, An income tax is a tax that is levied on persons or entities in relation to the income or profits that are earned by such individuals or organizations.

The amount of income subject to income tax is typically determined by multiplying the applicable tax rate by the amount of income that is taxable.

There is room for differentiation in tax rates according on the nature or features of the taxpayer as well as the nature of the income.

In conclusion, During the course of the year, they earned a total of $2,000 from the investments that are held in joint ownership.

According to the rules governing the calculation of gross income under the federal income tax system,

Janice and Jarrod are each considered as having earned a total of $500,000 during the tax year.