Question

Figuring out taxable social security benefits.

Jon has $16,710 in taxable pension income, as well as $27,303 in social security benefits for the year 2018. What amount of his social security benefit is taxable on his federal income tax return?

I attempted to answer this on my own and found:

Taxable amount= one-half the difference between the adjusted base amount and the base amount of the tax payer.

Jon's base amount = $25,000

Adjusted base amount = the lessor of $34,000 and ($16,710 + (27,303/2) = $30,362

Jon's taxable social security benefit= ($30,362-25,000) / 2 = $2681

Answer 1

Single filers with a combined income of $ 25,000 to $ 34,000 must pay income tax on
upto 50% of their Social Security benefits.
The income is taxable at the lower of the two mentioned below:
(i) 50% of the annual social security benefit, or
(ii) 50% of the difference between the combined income and the IRS base amount
Combined income of Jon = Pension income + 50% of social security benefits
Pension income	$16,710
50% of social security benefits($ 27,303 * 50%)	$13,652
Combined income	$30,362
Excess of combined income over base amount
Combined income	$30,362
Base amount	$25,000
Excess of combined income over base amount	$5,362
50% of excess of combined income over base amount	$2,681
Taxable value would be lower of the two
(i) 50% of the annual social security benefit, or	$13,652
(ii) 50% of excess of combined income over base amount	$2,681
Taxable value of social security benefit	$2,681