Elwood is retired. During 2020, he receives $9,800 in Social Security benefits. In addition, he receives $5,800 in cash dividends on stocks that he owns and $7,900 in interest on tax-exempt bonds. Assuming that Elwood is single, what is his gross income if a. He receives no other income? 5,800 b. He also receives $10,500 in unemployment compensation? S 24,200 X c. He sells some land for $79,700 and he paid $44,300 for the land? $59,600 x ) Check My Work Under the capital recovery concept, it could be said that half of each payment received from Social Security represents a return of the taxpayer's investment and is therefore excluded, much like annuities. But for lower-income taxpayers, a lesser-of formula is applied to determine the amount to include in gross income.