Question

Dan and Diana file a joint return. Dan earned $31,000 during the year before losing his job. Diana received Social Security benefits of $5,000. Requirements Determine the taxable portion of the Social Security benefits. b. What is the taxable portion of the Social Security benefits if Dan earned $46,000? a. Requirement a. Determine the taxable portion of the Social Security benefits. Begin by computing the provisional income. Only select items that are applicable to Dan and Diana. (Leave unused input fields blank, do not select a label or enter a zero.) 46000 | Adjusted gross income (excluding Social Security benefits) Plus: 50% of Social Security benefits Provisional income 48500

Answer 1

Answer

The Portion of Social Security Benefits are calculated based on following rule.

Up to 50% of your social security benefits will be taxed if your income is $25,000 to $ 34,000 for an individual or $32,000 to $44,000 for a married couple filing jointly.

Upto 85% of your social security benefits will be taxed if your income is more than $ 34000 (if you are Individual) or $ 44000 (in case of couple)

Accordingly in given case Taxable Porition of Social Security Benefits are determined as follows.

A) The Taxable Potion of the social Security benefits is $2500. (When Dan earn $31000 during the year)

B) The Taxable Portiono of the Social Security Benefits is $4250.( when Dan earn $46000 during the year)