Question

Determine the taxable amount of social security benefits for the following situations. If required, round your answers to the nearest dollar. If an amount is zero, enter "0". a. Erwin and Eleanor are married and file a joint tax return. They have adjusted gross income of $42,800, no tax-exempt interest, and $14,980 of Social Security benefits. As a result, $ 9,145 of the Social Security benefits are taxable. b. Assume Erwin and Eleanor have adjusted gross income of $15,800, no tax-exempt interest, and $17,380 of Social Security benefits. As a result, $ 0 of the Social Security benefits are taxable. c. Assume Erwin and Eleanor have adjusted gross income of $88,000, no tax-exempt interest, and $13,200 of Social Security benefits. As a result, $ 11,220 of the Social Security benefits are taxable.

Answer 1

a. Erwin and Eleanor are married and file a joint tax return

1)-0.50($14,980 of Social Security benefits.)=$7490

2)-0.50( $42,800+0.50($14,980 )-$32000=$9145.0

b. Assume Erwin and Eleanor have adjusted gross income of $15,800, no tax-exempt interest

1)-0.50($17,380 of Social Security benefits=$8690

2)-0.50($15,800+0.50($17,380 )-$32000=$3755

None of the benefits would be taxable as the result is not a positive number.

c. Assume Erwin and Eleanor have adjusted gross income of $88,000, no tax-exempt interest, and $13,200 of Social Security benefits.

1)-0.85($ 11,220 of Social Security benefits)=$9537

2) sum of

a)-0.85($ 11,220 +0.50($11220)-$44000 second base amount=$23094.5

b)Lesser of

-0.50($ 11,220  of Social Security benefits)=$5610

-0.50($ 11,220 +0.50($11200)-$32000)=$17660

The sum equals to

Therefore 85% of the social security benefits $9537 is include in the couples gross income.

The erwin and Eleanor include social security benefits will be $9537