Mr. and Mrs. A, both age 72, file a joint tax return. They each received $7,500 social security benefits. In addition, they received taxable pensions of $12,000 for Mr. A and $6,000 for Mrs. A. What is the taxable amount of the social security benefits received by the A if the base amount for MFJ is $32,000?
The answer is zero, because the provisional income (MAGI plus half of ss bene's) is less than the base of $32,000 ($12k + $6k + (50%*15k) = $25.5k)
what is the logic behind it that the taxable amount is zero? can u please explain? is it because the 12k 6k=18k less than 32 K? Posted by Fatri on 05/23/2012 @ 1:37 PM
Tthe answer is zero because:
(12k+6K) plus the 15k in social security = $33k
basis is 32k so it would be 1k but look at their age and it reduces it to zero becuase of the extra reduction for their age.
No, there is not additional reduction based on the age of the taxpayer when figuring the taxable portion of Social Security benefits. Also, only half of the benefits (i.e. half of $15,000) are included when calculating whether the provisional income is more than the base amount. Posted by Laurence on 05/25/2012 @ 9:54 PM
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