US Tax Question Chuck is single and retired at 65 years old in march of 2018,...

US Tax Question

Chuck is single and retired at 65 years old in march of 2018, for the year of 2018 he received the following sources of income:

Salary 14000

interest income 2000

divident income 1000

tax exempt income 1000

social security benefits 5000

net rental income 6000

What is Chucks modified adjusted gross income? what amaount if any, of his social security benefits must he include in his 2018 gross income? what is Chucks taxable income for 2018?

Solutions

Expert Solution

(b) Computation og Gross income and Adjusted Gross income.
Salary Income	14000
Add: Interest Income	2000
Add: Dividend Income	1,000
Add: Rental Income	6,000
Adjusted Gross Income(i)	23000


At 65 year, depending on the year of your birth, you are at full retirement age and can get full Social Security retirement benefits tax-free. However, if you're still working, part of your benefits might be subject to taxation. The IRS adds the figures for your earnings and half your Social Security benefits.
In this case Chuck is 65 years old and retired so Social security benefit will not be included in his gross income.

Adjusted Gross Income	23000
Modifies Adjusted Gross Income	23000
Taxable income	23000

Note-
Best effort have been made to answer the question correctly, in case of any discrepencies kindly comment and i will try to resolve it as soon as possible.
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ekkarill92 answered 1 year ago

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