Question

Required: Carl and Karina file a joint return. Karina earned a salary of $42,500 and received dividends of $3,360, taxable interest income of $2,180, and nontaxable interest of $1,090. Carl received $9,720 of social security benefits and a gift of $6,180 from his brother. What amount of social security benefits is taxable to Carl and Karina? Taxable social security benefits

Answer 1

Given that calculation of Taxable social security benefits: Salary $ 42,500 Dividend $3,360 Tazable interest income $2,080 Tax exempt interest $1090 50% of social security benefits $9720x50% - $ 4860 provisional income $ 53,990 [ $42,500 + $ 3,360 + $ 2180 + $ 1090 +$€-860] Tarabje social security benefit is $ 9,720 x 854 = $8,262