Social Security Benefits

Question 1

How are taxable social security benefits determined?

Answer 1

By determining the provisional income: One-half of SS benefits, plus all other income, including tax-exempt interest.

Question 2

What are three main items that cannot be excluded from income when determining taxability for SS benefits?

Answer 2

A taxpayer cannot exclude income received from interest from a qualified US Saving bond, employer-provided benefits, foreign earned income, foreign housing or foreign income earned as a resident of American Samoa or Puerto Rico.

Question 3

In regards to social security benefits, how is provisional income calculated?

Answer 3

By taking one-half of SS benefits and adding all other sources of income .

Question 4

What is the 85% upper base amount for single taxpayers collecting SS benefits?

Answer 4

$34,000

Question 5

What is the 50% lower base amount for single taxpayers collecting SS benefits?

Answer 5

$25,000

Question 6

What is the 50% lower base amount for Married Filing Jointly taxpayers collecting SS benefits?

Answer 6

$32,000

Question 7

What is the 85% upper base amount for MFJ taxpayers collecting SS benefits?

Answer 7

$44,000

Question 8

For each filing status, what is maximum amount income that can be earned in order for SS benefits to not be taxed.

Answer 8

Single, lower base - $25,000, MFS live with spouse - lower base $0, MFS live alone - $25,000, MFJ lower base - $32,000.