Question
Tisha received a lump-sum payment of $4,000. The payment is for Social Security benefits that were due to her in 1990 ($3,000) and 1991 ($1,000).
Tisha received a lump-sum payment of $4,000. The payment is for Social Security benefits that were due to her in 1990 ($3,000) and 1991 ($1,000). For the current year, she has a marginal tax rate of 30% and 85% of all Social Security benefits are included in gross income. For 1990 and 1991, 50% of all Social Security benefits were included in gross income. What is the least amont of the lump-sum payment that Tisha can include in this year's gross income?
A. $3,400
B $4,000
C. $2,000
D. $0
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South Western Federal Taxation 2017 Essentials Of Taxation Individuals And Business Entities
Authors: William A. Raabe, David M. Maloney, James C. Young, Annette Nellen
20th Edition
9780357109144
