Question

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 $17,800, no tax-exempt interest, and $19,580 of Social Security benefits. As a result, $ of the Social Security benefits are taxable.

c. Assume Erwin and Eleanor have adjusted gross income of $116,500, no tax-exempt interest, and $17,475 of Social Security benefits. As a result, $ of the Social Security benefits are taxable.

Answer 1

Answer:

Up to half of Social Security benefits are taxable for people with a combined income of at any rate $25,000, or a couple recording together with a combined income of at any rate $32,000.

Up to 85% of Social Security benefits are taxable for people with a combined income of at any rate $34,000, or a couple recording together with a combined income of at any rate $44,000.

a)

Calculation of taxable social security benefits:

Particulars	Amount	Amount
Social security benefits are taxable	= $15,050 * 50% = $15,050*50/100 = $ 7,525	$ 7,525

b)

Calculation of taxable social security benefits:

Particulars	Amount	Amount
Social security benefits are taxable	= $ 0	$ 0

c)

Calculation of taxable social security benefits:

Particulars	Amount	Amount
Social security benefits are taxable	=$17,475 *85% =$17,475 *85/100 =$ 14,853.75	$ 14,853.75