Hank is a single taxpayer who earned $31,896 in wages and $11,724 of Social Security benefits....

Hank is a single taxpayer who earned $31,896 in wages and $11,724 of Social Security benefits. How much of Hank’s Social Security benefits are taxable?

a.$31,896

b.$7,694

c.$11,724

d.$9,965

Expert Solution

Social security worksheet:

Ref	Particulars	Amount
	MAGI plus 50% of SS:
	MAGI	31,896
50%SS	Add: 50% of SS	5,862
	Total	37,758
	Less: base amount	(25,000)
a	First excess	12,758
b	Less: second base	(9,000)
	Second excess	3,758
c	Smaller of two a,b	9,000
d	50% of c	4,500
e	Smaller of d and 50%SS	4,500
f	× 85% of second excess	3,194
g	Add e,f	7,694
h	85% of SS	9,965
min(g,h)	Taxable benefits	7,694

Answer is:

7,694

ekkarill92 answered 2 years ago

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