TAXATION OF SOCIAL SECURITY BENEFITS (2 OF 3)
01.Core Concepts
• If combined income falls between the first and second hurdles, the taxable amount of the Social Security benefits is the lesser of: • 50% of Social Security benefits, or • 50% [MAGI + 0.50 (Social Security benefits) less Hurdle 1 value] 27 TAXATION OF SOCIAL SECURITY BENEFITS (3 OF 3) • Combined income > second hurdle, the taxable amount of the Social Security benefits is the lesser of: • 85% of Social Security benefits, or • 85% [MAGI + 0.5(Social Security benefits) less Hurdle 2], plus the lesser of: $6,000 for MFJ, or $4,500 for all other taxpayers, or The taxable amount calculated based on the 50% formula and only considering Hurdle 1