Exercise 4-26 (Algorithmic) (LO. 4) Determine the taxable amount of Social Security benefits for the following situations. If required, round your answers to the nearest dollar. If an amount is zero, enter "0". a. Tyler and Candice are married and file a joint tax return. They have adjusted gross income of $39,400 before considering their Social Security benefits, no tax-exempt interest, and $13,790 of Social Security benefits. As a result, t X of the Social Security benefits are taxable. b. Assume Tyler and Candice have adjusted cuss income of $16,600 before considering their Social Security benefits, no tax-exempt interest, and $18,260 of Social Security benefits. As a result, s O of the Social Security benefits are taxable. c. Assume Tyler and Candice have adjusted gross income of $107,500 before considering their Social Security benefits, no tax-exempt interest, and $16,125 of Social Security benefits. As a result, of the Social Security benefits are taxable. Feedback Check My Work If a taxpayer's income exceeds a specified base amount, as much as 85 percent of Social Security retirement benefits must be included in gross income. The taxable amount of benefits is determined through the application of one of two formulas that utilize a unique measure of income- modified adjusted gross income (MAGI).
Exercise 4-26 (Algorithmic) (LO. 4) Determine the taxable amount of Social Security benefits for the following situations. If required, round your answers to the nearest dollar. If an amount is zero, enter "0". a. Tyler and Candice are married and file a joint tax return. They have adjusted gross income of $39,400 before considering their Social Security benefits, no tax-exempt interest, and $13,790 of Social Security benefits. As a result, t X of the Social Security benefits are taxable. b. Assume Tyler and Candice have adjusted cuss income of $16,600 before considering their Social Security benefits, no tax-exempt interest, and $18,260 of Social Security benefits. As a result, s O of the Social Security benefits are taxable. c. Assume Tyler and Candice have adjusted gross income of $107,500 before considering their Social Security benefits, no tax-exempt interest, and $16,125 of Social Security benefits. As a result, of the Social Security benefits are taxable. Feedback Check My Work If a taxpayer's income exceeds a specified base amount, as much as 85 percent of Social Security retirement benefits must be included in gross income. The taxable amount of benefits is determined through the application of one of two formulas that utilize a unique measure of income- modified adjusted gross income (MAGI).
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter14: Planning For Retirement
Section: Chapter Questions
Problem 4FPE
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Transcribed Image Text:Exercise 4-26 (Algorithmic) (LO. 4)
Determine the taxable amount of Social Security benefits for the following situations.
If required, round your answers to the nearest dollar. If an amount is zero, enter "0".
a. Tyler and Candice are married and file a joint tax return. They have adjusted gross income of $39,400 before considering their Social
Security benefits, no tax-exempt interest, and $13,790 of Social Security benefits. As a result, s
X of the Social Security:
benefits are taxable.
b. Assume Tyler and Candice have adjusted cuss income of $16,600 before considering their Social Security benefits, no tax-exempt
interest, and $18,260 of Social Security benefits. As a result,
O of the Social Security benefits are taxable.
c. Assume Tyler and Candice have adjusted gross income of $107,500 before considering their Social Security benefits, no tax-exempt
interest, and $16,125 of Social Security benefits. As a result, s
of the Social Security benefits are taxable.
Feedback
Check My Work
If a taxpayer's income exceeds a specified base amount, as much as 85 percent of Social Security retirement benefits must be included in gross
income. The taxable amount of benefits is determined through the application of one of two formulas that utilize a unique measure of income-
modified adjusted gross income (MAGI).
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