Mr.& Mrs.Tsayong are both over 66 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.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:

They did not have any adjustments to income.What amount of Mr.& Mrs.Tsayongs Social Security benefits is taxable this year?

Quizplus · Accepted Answer

B) Provisional income is $41,000 ($10,000 + $16,000 + $10,000 [one-half of Social Security payments] + $5,000 tax-exempt interest). $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& MrsTsayong Are Both Over 66 Years of Age and Are