Question
Figuring out taxable social security benefits. Jon has $16,710 in taxable pension income, as well as $27,303 in social security benefits for the year 2018.
Figuring out taxable social security benefits.
Jon has $16,710 in taxable pension income, as well as $27,303 in social security benefits for the year 2018. What amount of his social security benefit is taxable on his federal income tax return?
I attempted to answer this on my own and found:
Taxable amount= one-half the difference between the adjusted base amount and the base amount of the tax payer.
Jon's base amount = $25,000
Adjusted base amount = the lessor of $34,000 and ($16,710 + (27,303/2) = $30,362
Jon's taxable social security benefit= ($30,362-25,000) / 2 = $2681
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