Question

calculate the taxable amount of social security. John and Jean are married filing jointly.

They had the following amounts of income for 2018.

Taxable interest income $10,000

Non-taxable interest income $20,000

Pension income $15,000

Social security benefits $30,000

Answer 1

Step 1:

Combine income	If the both are filing jointly
Less than 32000	Security benefits is considered as not taxable.
32000 to 44000	50 percent of security benefits is considered as taxable.
More than 44000	85 percent of security benefits is considered as taxable.

Step 2: Combined income

50% of Social security benefits is considered for combined income.
Taxable interest income	10,000
Pension income	15,000
Adjusted gross income	25,000
Adjusted gross income	25,000
Nontaxable interest	20,000
50% Social security benefits (30,000*50%)	15,000
Combined income	60,000

Step 3:: Final answer

Taxable amount of social security (30000*85%)

25,500