Question

Shane and Megan, a married couple, have combined wages of $47,000 and receive combined Social Security benefits of $18,000. How much of their social security benefits is taxable?

a.$16,200

b.$0

c.$18,000

d.$15,300

Answer 1

Using social security worksheet:

Ref	Particulars	Amount
	MAGI plus 50% of SS:
	MAGI	47,000
50%SS	Add: 50% of SS	9,000
	Total	56,000
	Less: base amount	(32,000)
a	First excess	24,000
b	Less: second base	(12,000)
	Second excess	12,000
c	Smaller of two a,b	12,000
d	50% of c	6,000
e	Smaller of d and 50%SS	6,000
f	× 85% of second excess	10,200
g	Add e,f	16,200
h	85% of SS	15,300
min(g,h)	Taxable benefits	15,300

Answer is:

15,300