Question

Carl and Karina file a joint return. Karina earned a salary of $38,000 and received dividends of $3,000, taxable interest income of $2,000, and nontaxable interest of $1,000. Carl received $9,000 of social security benefits and a gift of $6,000 from his brother. What amount of social security benefits is taxable to Carl and Karina?

Answer 1

The amount of social security benefits is taxable to Carl and Karina is $7650.

Step-by-step explanation:

For joint filing return combined income of $32,000 to $44,000 you will pay 50% of your social security income and if you have combined income more than $44,000 you can expect to pay taxes up to 85% of your social security amount.

Social security amount that is taxable = $9,000*85/100

= $7650

Therefore, The amount of social security benefits is taxable to Carl and Karina is $7650.