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4. For the 2020 tax year, MATHEW, a MARRIED taxpayer, receives $24,250 in Social Security benefits. She has adjusted gross income of $30,000, not including any Social Security income, and receives $ 10,000 of tax-exempt municipal bond interest. MATHEW must include $ ?????? of her Social Security benefits in income. Simplified Taxable Social Security Worksheet (for most people) SOCIAL SECURITY TABLE 1. Enter the total amount of Social Security income. 2. Enter one-half of line 1. Enter the total of taxable income items on Form 1040 except Social Security 3. income.

4. For the 2020 tax year, MATHEW, a MARRIED taxpayer, receives $24,250 in Social Security benefits. She has adjusted gross income of $30,000, not including any Social Security income, and receives $ 10,000 of tax-exempt municipal bond interest. MATHEW must include $ ?????? of her Social Security benefits in income. Simplified Taxable Social Security Worksheet (for most people) SOCIAL SECURITY TABLE 1. Enter the total amount of Social Security income. 2. Enter one-half of line 1. Enter the total of taxable income items on Form 1040 except Social Security 3. income.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Simplified Taxable Social Security Worksheet (for most people) 4. For the 2020 tax year, MATHEW, a MARRIED taxpayer, receives $24,250 in Social Security benefits. She has adjusted gross income of $30,000, not including any Social Security income, and receives $ 10,000 of tax-exempt municipal bond interest. MATHEW must include $ ?????? of her Social Security benefits in income. Simplified Taxable Social Security Worksheet (for most people) SOCIAL SECURITY TABLE 1. Enter the total amount of Social Security income. 2. Enter one-half of line 1. Enter the total of taxable income items on Form 1040 except Social Security 3. income. 4. Enter the amount of tax-exempt interest income. 5. Add lines 2, 3, and 4. Enter all adjustments for AGI except for student loan interest, the domestic 6. production activities deduction, and the tuition and fees deduction. Subtract line 6 from line 5. If zero or less, stop here, none of the Social 7. Security benefits are taxable. Enter $25,000 ($32,000 if married filing jointly; $0 if married filing separately 8. I and living with spouse at any time during the year). 9. Subtract line 8 from line 7. If zero or less, enter -0-. Note: If line 9 is zero or less, stop here; none of your benefits are taxable. Otherwise, go on to line 10. Enter $9,000 ($12,000 if married filing jointly; $0 if married filing separately 10. ´and living with spouse at any time during the year). 11. Subtract line 10 from line 9. If zero or less, enter -0-. 12. Enter the smaller of line 9 or line 10. 13. Enter one-half of line 12. 14. Enter the smaller of line 2 or line 13. 15. Multiply line 11 by 85% (.85). If line 11 is zero, enter –0-. 16. Add lines 14 and 15. 17. Multiply line 1 by 85% (.85).
Transcribed Image Text:Simplified Taxable Social Security Worksheet (for most people) 4. For the 2020 tax year, MATHEW, a MARRIED taxpayer, receives $24,250 in Social Security benefits. She has adjusted gross income of $30,000, not including any Social Security income, and receives $ 10,000 of tax-exempt municipal bond interest. MATHEW must include $ ?????? of her Social Security benefits in income. Simplified Taxable Social Security Worksheet (for most people) SOCIAL SECURITY TABLE 1. Enter the total amount of Social Security income. 2. Enter one-half of line 1. Enter the total of taxable income items on Form 1040 except Social Security 3. income. 4. Enter the amount of tax-exempt interest income. 5. Add lines 2, 3, and 4. Enter all adjustments for AGI except for student loan interest, the domestic 6. production activities deduction, and the tuition and fees deduction. Subtract line 6 from line 5. If zero or less, stop here, none of the Social 7. Security benefits are taxable. Enter $25,000 ($32,000 if married filing jointly; $0 if married filing separately 8. I and living with spouse at any time during the year). 9. Subtract line 8 from line 7. If zero or less, enter -0-. Note: If line 9 is zero or less, stop here; none of your benefits are taxable. Otherwise, go on to line 10. Enter $9,000 ($12,000 if married filing jointly; $0 if married filing separately 10. ´and living with spouse at any time during the year). 11. Subtract line 10 from line 9. If zero or less, enter -0-. 12. Enter the smaller of line 9 or line 10. 13. Enter one-half of line 12. 14. Enter the smaller of line 2 or line 13. 15. Multiply line 11 by 85% (.85). If line 11 is zero, enter –0-. 16. Add lines 14 and 15. 17. Multiply line 1 by 85% (.85).
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