Question

Essentials of Federal Income Taxation 12. Social Security Benefits. (Obj. 2) Taxpayers A through Creceived social security (SS) benefits during the year. Taxpayer Clived with his spouse part of the year. Follow the instructions and fill in the blank lines in the table below for each taxpayer. On line p. show the amour of taxable social security benefits for each taxpayer. MELMES Single $ 7,800 $12,900 $11,000 Social Security benefits received First-Tier Formula a. AGI before ss b. 50% SS benefits c. Tax-exempt interest d. Revised AGI $50,000 3,900 500 $48.000 6,450 400 $ 5.000 5,500 400 e. ( 25.000) Less: Base amount (32,000) 0) ( f. g. h. Excess revised AGI 50% of line f. Tentative taxable SS benefits (lesser of line g. or b.) Second-Tier Formula i. Revised AGI (line d.) (34,000 ( 44,000) ( 0) j. Less: Threshold amount k. Excess 1. Line k. x 85% m. Lesser of line h. or q. n. Line I. + line m. 0. SS benefits x 85% p. Taxable benefits (lesser of line n. or o.) Threshold amount (linej) Less base amount (line e.) Difference q 50% of the difference $ 0 $34,000 ( 25,000) $ 9,000 $ 4,500 $44,000 32,000) $12,000 $ 6,000 $ S 0 0

compute this using 2019 tax laws

Answer 1

(values in $) A B C

a. AGI before ss 50000 48000 5000

b. SS received 3900 6450 5500

c. Tax exempt interest 500 400 400

d. Revised AGI (a+b)    53900 54450 10500

e.Less Base amount (25000) (32000) (0)

f.Excess revised AGI 28900 22450 10500

g. 50% of line f 14450 11225 5250

h.Tentative taxable ss benefits 3900 6450 5250

(lesser of line g or b)

i.Revised AGI(line d) 53900 54450 10500

j.Less Threshold amount (34000) (44000) (0)

k.Excess 19900 10450 10500

l.line k *85% 16915 8883 8925

m.lesser of line h or q 3900 6000 0

n.line l + line m 20815 14883 8925

o.SS benefits *85% 6630 10965 9350

p.Taxable benefits (lesser of line n or o) 6630 10965 8925

Threshold amount(line j) 34000 44000 0

Less base amount (line e) (25000) (32000) 0

Excess 9000 12000 0

q. 50 % of the excess 4500 6000 0