Question
Exercise 4-26 (Algorithmic) (LO. 4) Determine the taxable amount of Social Security benefits for the following situations. If required, round your answers to the
Exercise 4-26 (Algorithmic) (LO. 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 $40,400 before considering their Social of the Social Security Security benefits, no tax-exempt interest, and $14,140 of Social Security benefits. As a result, 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, t of the Social Security benefits are taxable. c. Assume Tyler and Candice have adjusted gross income of $104,500 before considering their Social Security benefits, no tax-exempt interest, and $15,675 of Social Security benefits. As a result, t 7,837 X of the Social Security benefits are taxable. Feedback Check My Work 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).
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