Mr. and Mrs. Shohler received $25,200 Social Security benefits this year. Their only other source of income was Mrs. Shohler's $10,479 taxable pension from her former employer. How much of their Social Security is included in gross income?

Question

Quizplus · Accepted Answer

To determine the taxable portion of Social Security benefits, one must first calculate the combined income, which includes the total of one-half of the Social Security benefits, plus all other taxable income. In this case, the combined income is (1/2 of $25,200) + $10,479 = $12,600 + $10,479 = $23,079. For married couples filing jointly, if the combined income is between $32,000 and $44,000, up to 50% of Social Security benefits may be taxable. If it's below $32,000, then the benefits are not taxable. Since their combined income is below $32,000, none of their Social Security benefits are included in their gross income.

Mr and Mrs