In addition to Social Security benefits of $8,000, Mr. and Mrs. Wells have adjusted gross income of $32,000 and tax- exempt interest of $1,000. They will file a joint return. The taxable portion of their Social Security benefits will be

Question

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To determine the taxable portion of Social Security benefits, you calculate the provisional income: $32,000 (AGI) + $1,000 (tax-exempt interest) + 50% of $8,000 (Social Security) = $37,000. For joint filers, if provisional income is between $32,000 and $44,000, up to 50% of Social Security benefits may be taxable. Here, $2,500 is taxable.

In Addition to Social Security Benefits of $8,000, Mr