Question

Grady received $8,640 of Social Security benefits this year. Grady also reported salary and interest income this year. What amount of the benefits must Grady include in his gross income under the following five independent situations? (Leave no answer blank. Enter zero if applicable.) b. Grady files single and reports salary of $23.210 and interest income of $710. Amount to be included 2,530 S

Answer 1

Ans: Modified AGI plus 50% of social security benefit

Salary= $23,210

Interest income= $710

Social security benefit= 8,460

Modified AGI plus +50% of social security benefit= 23,210+710+50%(8,460)

= 23,920+4230

= 28,150

Taxable portion of social security benefit=50% of{modified AGI plus 50% of social security benefit}-25,000)

=50%(28,150-25,000)

=50%(3,150)

=$1,575