For Samson's income, what percentage of his social security income is taxable?

Prepare for the Intuit Academy Tax Level 1 Exam. Study with flashcards and multiple choice questions, each question includes hints and explanations. Ace your exam and advance your tax knowledge!

For individuals like Samson receiving social security income, the percentage of that income that is taxable depends on their combined income, which consists of adjusted gross income (AGI) plus any tax-exempt interest and half of their social security benefits.

If Samson's combined income exceeds certain thresholds set by the IRS, then up to 85% of his social security benefits may be subject to taxation. However, if the income is below specified limits, then he may not owe taxes on any of it.

In the context of this question, the reference to 50% indicates that if his income levels are moderate, that could be a potential taxation figure, but the max taxable limit can indeed reach up to 85%, thus making the notion of 100% taxable not the maximum expectation in many cases.

Situations leading to the 50% taxable threshold would only apply when the combined income is somewhat close to the upper limit but not exceeding the threshold where additional benefits would be taxed up to 85%. Thus, under certain scenarios, the correct answer reflects that a significant, depending on multiple factors affecting Samson's overall income, can indeed lead to 50% of his social security being taxable.

It's important for taxpayers to calculate their specific circumstances to determine

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