Kevin a 69yearold single taxpayer received 20000 in social s

Kevin, a 69-year-old single taxpayer, received $20,000 in social security benefits in 2015. He also earned $12,000 in wages and $6,000 in interest income, $4,000 of which was tax-exempt. What percentage of Kevin\'s benefits will most likely be considered taxable income?

A) None

B) Up to 50%

C) Up to 85%

D) Up to 100%

Note: Option B) Up to 50% is incorrect answer in my test

Solution

The correct answer is B.

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In the event that the pay is amongst $25,000 and $34,000 on a solitary return or amongst $32,000 and $44,000 on a joint return, up to half of your advantages can be taxed.

In the event that the pay is more than $34,000 on a solitary profit or $44,000 for a joint restore, it\'s feasible that 85% of your advantages will be saddled

As needs be the pay of Kevin is = 20000+12000+2000 = 34000 which isn\'t more than $ 34000.Hence half of advantages are assessable as takes after,

= $ 20000*0.50 = $10,000

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Hope that helps.

Feel free to comment if you need further assistance J