Question

Determine the taxable amount of social security benefits for the following situations. If required, round your answers to the nearest dollar. If an amount is zero, enter "0".

a. Erwin and Eleanor are married and file a joint tax return. They have adjusted gross income of $43,000, no tax-exempt interest, and $15,050 of Social Security benefits. As a result, $ of the Social Security benefits are taxable.

b. Assume Erwin and Eleanor have adjusted gross income of $17,400, no tax-exempt interest, and $19,140 of Social Security benefits. As a result, $ of the Social Security benefits are taxable.

c. Assume Erwin and Eleanor have adjusted gross income of $91,000, no tax-exempt interest, and $13,650 of Social Security benefits. As a result, $ of the Social Security benefits are taxable.

Answer 1

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Answers are highlighted in yellow: Solution: Married filing jointly: AGI Tax-exempt interest One-half of Social Security benefits (15050*50%); (19140*50%); (13650*50%) Provisional income Threshold Excess Income Lesser of (1) 85% of Social Security benefits (15050*85%) (13650*85%) (2) 85% of excess income, plus the lesser of (6525*85%)+(50525-32000)*50% or 7525 first step formula or 50% of benefits-$6,000 $ $ $ $ $ $ a 43,000 $ - $ 7,525 $ 50,525 $ 44,000 $ 6,525 $ b c 17,400 $ 91,000 - $ - 9,570 $ 6,825 26,970 $ 97,825 32,000 $ 44,000 - $ 53,825 or: $ 11,603 12793 13071 Taxable Social Security benefits $ 12,793 $ - $ 11,603 $0