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 $40,600, no tax-exempt interest, and $14,210 of Social Security benefits. As a result, $ of the Social Security benefits are taxable.

b. Assume Erwin and Eleanor have adjusted gross income of $15,200, no tax-exempt interest, and $16,720 of Social Security benefits. As a result, $ of the Social Security benefits are taxable.

c. Assume Erwin and Eleanor have adjusted gross income of $92,500, no tax-exempt interest, and $13,875 of Social Security benefits. As a result, $ of the Social Security benefits are taxable.

Answer 1

The amount of social security benefits that are taxable depends on the extent to which your income plus half of your benefits exceed certain base amounts

If your Total income is $25000 for an individual or $ 32000 for a married couple filing jointly.

You must pay income taxes on your social security benefits. Below these thresholds your benefits are not taxed.

Upto 50% of your benefits if your income is $25000 in case of individual,$32000 in case of married couple filing jointly.

Upto 85% of your benefits if your income is $34000 in case of individual,$44000 in case of married couple filing jointly.

a) Income = $40600+$7105( half of $14210 )

=$47705

Taxable social security benefits =$47705*85% (more than $44000 )

=$40549

b) Income =$15200+$8360 ( half of $16720 )

=$23560

Taxable social security benefits = 0 ( less than $32000)

c) Income = $92500+$6938(half of $13875)

=$99438

Taxable social security benefits =$99438*85% ( more than $44000)

=$84522