Mr. & Mrs. Bronson are both over 65 years of age and are filing a joint return. Their income this year consisted of the following: They did not have any adjustments to income. What amount of Mr. & Mrs. Bronson's social security benefits is taxable this year?

Question

Mr. & Mrs. Bronson are both over 65 years of age and are filing a joint return. Their income this year consisted of the following:  They did not have any adjustments to income. What amount of Mr. & Mrs. Bronson's social security benefits is taxable this year?

Quizplus · Accepted Answer

The taxable amount of Social Security benefits is determined by comparing the taxpayer's provisional income to the base amount. The base amount for taxpayers filing a joint return and both spouses are over 65 is $32,000. The Bronsons' provisional income is $41,000 ($30,000 in Social Security benefits + $8,000 in pension income + $3,000 in interest income). Since their provisional income is above the base amount, 50% of their Social Security benefits are taxable. 50% of $9,000 (half of their Social Security benefits) is $4,500. Therefore, the answer is B, $4,500.

Mr & Mrs Bronson Are Both Over 65 Years of Age and Age