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

Provisional income is $41,000 ($6,000 + $9,000 + $10,000 [one-half of Social Security payments] + $5,000 + $11,000). $41,000 - $32,000 baseline amount = $9,000 × 0.50 = $4,500 taxable benefits (subject to the ceiling limit of one half of social security benefits, which is $10,000). Eighty-five percent of a portion of the social security benefits are subject to tax only if provisional income exceeds $44,000 on a joint return, or $34,000 for a single taxpayer.

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