Question

George and Weezy received $29,500 of Social Security benefits this year ($11,200 for George; $18,300 for Weezy). They also received $4,900 of interest from jointly owned City of Ranburne Bonds and dividend income.

What amount of the Social Security benefits must George and Weezy include in their gross income under the following independent situations?

c. George and Weezy file married joint and receive $32,600 of dividend income from stocks owned by George. Amount to be included

Answer 1

c) Combined Income= Adjusted gross income + 50%( Social security benifits)

32600+4900 + 50%(29500)

= 37500+14750

=52250

The combined income is 52250 which is greater than 44000

Since married couples who file jointly and have a combined income greater $44,000 may have to pay taxes on 85% percent of benefits Goerge and weezy would include entire 29500 Social security benifits

d) Combined Income = 16300+4900+ 50%(29500)

=21200+14750

=35950

The combined income is 35950 which is greter than 32000

Married couples who file jointly and have a combined income between $32,000 and $44,000 may have to pay taxes on 50 percent of benefits, Goerge and weezy would include entire 29500 Social security benifits