Exercise $4-26($Algorithmic$)($L$0.4)$

Determine the taxable amount of Social Security benefits for the following situations.

If required, round your answers to the nearest dollar. If an amount is zero, enter $"0".$

a$.$ Tyler and Candice are married and file a joint tax return. They have adjusted gross income of $$40,600$ before considering their Social

Security benefits, no tax$-$exempt interest, and $$14,210$ of Social Security benefits. As a result, $

$x$ of the Social Security

benefits are taxable.

b$.$ Assume Tyler and Candice have adjusted gross income of $$17,200$ before considering their Social Security benefits, no tax$-$exempt

interest, and $$18,920$ of Social Security benefits. As a result, $

$$ of the Social Security benefits are taxable.

c$.$ Assume Tyler and Candice have adjusted gross income of $$113,500$ before considering their Social Security benefits, no tax$-$exempt

interest, and $$17,025$ of Social Security benefits. As a result, $

$x$ of the Social Security benefits are taxable.

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If a taxpayer's income exceeds a specified base amount, as much as $85$ percent of Social Security retirement benefits must be included in gross

income. The taxable amount of benefits is determined through the application of one of two formulas that utilize a unique measure of income$-$

modified adjusted gross income $($MAGI$).$