Mr. & Mrs. Tsayong are both over 66 years of age and are filing a joint return. Their income this year consisted of the following: $$\begin{array} { | l | r | }
\hline \text { Taxable interest income } & \$ 10,000 \
\hline \text { Taxable pension } & 16,000 \
\hline \text { Total Social Security benefits } & 20,000 \
\hline \text { Tax-exempt interest } & 5,000 \
\hline
\end{array}$$ They did not have any adjustments to income. What amount of Mr. & Mrs. Tsayongs Social Security benefits is taxable this year?

Question

Mr. & Mrs. Tsayong are both over 66 years of age and are filing a joint return. Their income this year consisted of the following: $$\begin{array} { | l | r | } 
\hline \text { Taxable interest income } & \$ 10,000 \
\hline \text { Taxable pension } & 16,000 \
\hline \text { Total Social Security benefits } & 20,000 \
\hline \text { Tax-exempt interest } & 5,000 \
\hline
\end{array}$$ They did not have any adjustments to income. What amount of Mr. & Mrs. Tsayongs Social Security benefits is taxable this year?

Quizplus · Accepted Answer

To determine the taxable portion of Social Security benefits, calculate the provisional income: $10,000 (taxable interest) + $16,000 (pension) + $10,000 (half of Social Security benefits) + $5,000 (tax-exempt interest) = $41,000. For joint filers over 66, the base amount is $32,000. Since $41,000 exceeds $32,000 but is less than $44,000, 50% of the excess over $32,000 is taxable: 0.5 * ($41,000 - $32,000) = $4,500.

Mr & Mrs Tsayong Are Both Over 66 Years of Age and Age