Question

What is the taxable amount of social security income reported on the tax return if a single taxpayer received $9,400 in social security benefits and $150 in interest income?

a. $4,775.
b. $4,700.
c. $7,990.
d. $0.

Answer 1

The taxable amount of social security income reported on the tax return for a single taxpayer who received $9,400 in social security benefits and $150 in interest income would be $200.

Step-by-step explanation:

The taxable amount of social security income reported on the tax return for a single taxpayer who received $9,400 in social security benefits and $150 in interest income can be calculated by subtracting the standard deduction and exemption from the gross income. In 2010, the standard deduction and exemption for a single person totaled $9,350. Therefore, the taxable amount would be:

Taxable income = Gross income - (Standard deduction + Exemption) = $9,400 + $150 - $9,350 = $200

So, the taxable amount of social security income reported on the tax return would be $200.