26. Lo.A Compute the taxable Social Security benefits in each of the following a
ID: 2611085 • Letter: 2
Question
26. Lo.A Compute the taxable Social Security benefits in each of the following a. Erwin and Eleanor are married and file a joint tax return. They have adjusted situations: gross income of $46,000, no tax-exempt interest, and $12,400 of Social Security b. Erwin and Eleanor have adjusted gross income of $12,000, no tax-exempt interest c. Erwin and Eleanor have adjusted gross income of $85,000, no tax-exempt interest, benefits. and $16,000 of Social Security benefits. and $15,000 of Social Security benefits.Explanation / Answer
a. Taxable amount = 10540
b. Taxable amount = 0.
Since MAGI + 50% of social security received= 12000+ 16000*50% = 20000 is with in 32000 limit no social security is taxable.
c. Taxable amount= 12750
Modified AGI AGI excl social security 46,000 Plus: Tax exempt interest income - A Modified AGI 46,000 Condition A Modified AGI 46,000 a Social security benefits 12,400 b 50% of a 6,200 C= A+b 52,200 Condition amount C MAGI + 50% of social security= 52,200 Range of taxable social security benefits falls in Range strats Condition amount Range ends Taxable ratio Additional taxable amount ( applicable for 85% category) Taxable amount a b c d= b-a e f= d*e g= social security received*e i= lesser of 6000 or 50%*social security amount h= Lesser of g, (f+i) 0 32,000 - 0% - - - - 32,000 44,000 - 50% - 6,200 - - 44,000 52,200 8,200 85% 6,970 10,540 6,000.00 10,540 Total taxable social security benefits = 10,540Related Questions
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