Check for Understanding 3.5 According to the Maximum Percentage of Social Securi
ID: 2430160 • Letter: C
Question
Check for Understanding 3.5 According to the Maximum Percentage of Social Security Benefits Included in Gross Income chart, which of the following taxpayers would be in the "Up to 50%" column? Jordan, a non-dependent taxpayer filing S, whose modified AGl plus one-half of his net social security benefits is $11,200. Georgia, who files HH and whose modified AGI plus one-half of her net social security benefits is $25,000 . Clive, who hasn't been able to locate his wife in three years,files MFS, and whose modified AGI plus one-half of his net social security benefits is $30,000. Andrea, who files MFJ and whose AGI plus one-half of the net social security benefits is $44,001.Explanation / Answer
1. Following taxpayers would be in the "upto 50% column":
- Georgia who files HH and whose AGI plus one half of her social security benefit is $25000.
-- Clive, who has not been able to locate his wife from last three years files MFS and whose AGI plus one half of her social security benefit is $30000.
Explanation:
1. For Individual taxpayer if his/her AGI plus one half of her social security benefit is between $25000 to $ 34000 than 50% of benefits will be subject to tax.
2. For joint return (taxpayer and spouse) if his/her AGI plus one half of her social security benefit is between $32000 to $ 44000 than 50% of benefits will be subject to tax.
Only georgia and clive with filing staus HH and MFS satified the above conditions.