Question

a. Erwin and Eleanor are married and file a joint tax return. They have adjusted gross income of $43,000, no tax-exempt interest, and $15,050 of Social Security benefits. As a result, $_____ of the Social Security benefits are taxable.

b. Assume Erwin and Eleanor have adjusted gross income of $17,400, no tax-exempt interest, and $19,140 of Social Security benefits. As a result, $______ of the Social Security benefits are taxable.

c. Assume Erwin and Eleanor have adjusted gross income of $95,500, no tax-exempt interest, and $14,325 of Social Security benefits. As a result, $______ of the Social Security benefits are taxable.

Answer 1

• Up to 50% of Social Security benefits are taxable for individuals with a combined income of at least $25,000, or a couple filing jointly with a combined income of at least $32,000.
• Up to 85% of Social Security benefits are taxable for individuals with a combined income of at least $34,000, or a couple filing jointly with a combined income of at least $44,000.

a. Taxable Social Security Benefits = $ 15,050 * 50% = $ 7,525

b. Taxable Social Security Benefits = $ 0

c. Taxable Social Security Benefits = $ 95,500 * 85% = $ 81,175