Acctg 341 1

7:81PM Sun Jan 27 Lecture 3 (problems) # ull @ @ 50% X Chapter 4 - Social Security Married with A G 1 = $30,000; tax exempt interest income = $3,000; Social Security benefits = $10,900 Steps 1. Calculate MAGI 2. Add 's of Social Security to MAGI 3. Compare the result of step 2 to the Base Amounts and apply the appropriate formula (if necessary) to the social security amount Two Sets of Base Amounts Hase #1 $32,000 MFJ 50 MFS $25,000 all other filing statuses hello Base #2 $44,000 MIFS $34,000 all other filing statuses What is MAGI (modified adjusted gross income)? AGil (except social security) foreign earned income exclusion tax exempt income MAGI Is Social Security (SS) Taxable? . If MAGI + "(SS) is less than Base WI (for the appropriate filing status), then no SS is taxable . If MAGI + 14 (55) is greater than Base # 1 but less than Base #2 (i.e., in between the two sets of buses amounts). then use Formula I to determine the amount of $5 that is taxable . If MAGI + V(SS) is greater than Base #2 (for the appropriate filing status), then use Formula 2 to determine the amount of SS that is taxable Formula El 0:38/31:23 D CC 1.75x