Question

David and Donna file a joint return. David earned $30,000 during the year before losing his job. Donna received Social Security benefits of $5,800. Requirements a. Determine the taxable portion of the Social Security benefits. b. What is the taxable portion of the Social Security benefits if David earned $46,000? Requirement a. Determine the taxable portion of the Social Security benefits. Begin by computing the provisional income. Only select iems that are applicable to Dan and Diana. (Leave unused cells blank, do not select a label or enter a zero.) Plus: Provisional income The taxable portion of the Social Security benefits is

Answer 1

Based on the information available in the question, we can answer as follows:-

Requirement A:-

Particulars	Amount
Salary	30,000
1/2 of Social security benefits	2,900
Provisional Income	32,900

Per IRS, for married couples filing jointly, taxes will be paid to upto 50% of the Social security income if the provisional income is between $32,000 and $44,000.

Hence, the taxable portion of the social security benefits is $5,800 * 50% = $2,900

Requirement B:-

Particulars	Amount
Salary	46,000
1/2 of Social security benefits	2,900
Provisional Income	48,900

Per IRS, for married couples filing jointly, taxes will be paid to upto 85% of the Social security income if the Provisional Income is greater than $44,000.

Hence, the taxable portion of the social security benefits is $5,800 * 85% = $4,930

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