EXAMPLE (2 OF 2)
01.Core Concepts
Beth & Bill have regular income of $35,000, muni income of $5,000 and receive Social Security benefits of $30,000 • MAGI + ½ SS benefit: $35k + $5k + $15k = $55k • Taxable portion of Social Security benefits: A = MAGI + ½ SS Benefit > $32k = $23k; B = MAGI+ ½ SS Benefit > $44k = $11k 1. 50% (A) + 35% (B) = $11.5k + $3.85k = $15.35k 2. 85% SSB = $25.5k 3. 50% SSB + 85% (B) = $15k + $9.35k = $24.35k 31 DISABILITY BENEFITS • Benefits payable to workers with: • Severe physical or mental impairments which prevents them from performing “substantial work” • Cannot perform any gainful work • Payable at any age • Earned at least 2 credits x number of years from age 21 to age when disabled • Age 31 or older must have earned at least 20 credits during the 10 years immediately preceding disability