Question

bart, a single taxpayer, has recently retired. this year, he received $24,000 in pension payments and $5,000 of social security payments. what amount must bart include in his gross income for the social security payments?

Answer 1

750

1. if MAGI + 50% of SSB <= 25,000 SSB are not taxable.

does not pass this.

2. If $25,000 < MAGI +50% of SSB <=$34,000 then taxable SSB are the lesser of

a. 50% of SSB

or

b. 50% (MAGI+SSB - 25,000)

b= 50%(24,000+2,500-25,000)

=750