Reva is a single taxpayer with a taxable pension of $22,000,tax-exempt interest of $10,000,and Social Security benefits of $10,000.What is the amount of her taxable Social Security benefits?

Question

Quizplus · Accepted Answer

To determine the amount of taxable Social Security benefits, you need to calculate the provisional income. Provisional income is calculated by adding together your adjusted gross income (AGI), tax-exempt interest, and one-half of your Social Security benefits. In this case, the provisional income is:

$22,000 + $10,000 + ($10,000/2) = $37,000

Since Reva is a single taxpayer with provisional income between $25,000 and $34,000, up to 50% of her Social Security benefits are taxable.

Therefore, the taxable Social Security benefits are:

$10,000 × 50% = $5,000

Therefore, the correct answer is C.

Reva Is a Single Taxpayer with a Taxable Pension of $22,000,tax-Exempt