Reference no: EM13482224

During the 2008 tax year, Brian, a single taxpayer, received $6,000in social security benefits. His adjusted gross income for the yearwas $18,000 (not including the social security benefits) and he received $30,000 in tax-exempt interest income. Calculate theamount of the social security benefits that Brian must include inhis gross income for 2008. Simplified Taxable Social Security Worksheet (for most people)

1. Enter the total amount of social security income .

2. Enter one-half of line 1.

3. Enter the totalof taxable income items on form 1040 except . Social securityincome.

4. Enter the amount of tax exempt interest income

5. Addline 2, 3, and 4. .

6. Enter all adjustments for AGI except forstudent loan interest, the domestics production activitiesdeduction, and the tuition and fee deduction

7. Subtract line 6from line 5. If zero or less, stop here, none of the Socialsecurity benefits are taxable

8. Enter $25,000 (32,000 if marriedfiling jointly; $0 if married . Filing separately and living withspouse at any time during the Year)

9. Subtract line 8 from line 7.If zero or less, enter -0-. Note: if line 9 is zero or less, stophere; none of your benefits are taxable. Otherwise, go on to line10.

10. Enter $9,000 ($12,000 if married filing jointly; $0 ifmarried filing . separately and living with spouse at any timeduring the year)

11. Subtract line 10 from line 9. If zero or less,enter -0-

12. Enter the smaller of line 9 or line 10.

13. Enter theone-half of line 12.

14. Enter the smaller of line 2 or line 13

15.Multiply line 11 by 85% (.85). If line 11 is zero, enter -0-

16. Add line 14 and 15.

17. Multiply line 1 by 85% (.85)

18. Taxablebenefits. Enter the smaller of line 16 or line 17.