An ordained minister's total income subject to income taxes is comprised of wages plus what additional amount for events?

Prepare for the Enrolled Agent Exam. Use flashcards and multiple-choice questions with hints and explanations to master the material. Be exam-ready with confidence!

An ordained minister's total income subject to income taxes includes not only their wages but also the amounts received for certain services performed. In many cases, this can include income from various religious functions such as weddings, funerals, and other ceremonies, which are often deemed taxable.

In this context, if the additional amount for events totals $2,000, this indicates that the calculations or typical scenarios used derive a reasonable total that reflects standard compensation for an ordained minister's services beyond their official salary. The correct amount must accurately represent the expected earnings from these additional religious duties, aligning with IRS guidelines on how ministers are compensated.

The other provided figures may not reflect common earnings expectations for such activities based on typical compensation patterns for ministers, thus making $2,000 the most suitable and plausible amount to add to their total taxable income.

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