SOCIAL SECURITY TAXATION: EXAMPLE 2 (1 OF 2)
01.Core Concepts
Andrea, an unmarried taxpayer using the single filing status, received $15,000 of Social Security retirement benefits this year. She also received $5,000 of interest income and $48,000 of income from her retirement plan during the year. Since her MAGI ($53,000) plus one-half of her Social Security benefits (0.5 x $15,000 = $7,500) exceeds her adjusted base amount ($34,000), she must calculate her includible Social Security benefits using the “85% formulas.”