Question

A 62-year-old, married taxpayer files Married Filing Separately, and lives apart from the spouse for the entire taxable year. What is the taxpayer's base amount for computing taxable social security benefits for the taxable year?
(4 Points)

A. Zero

B. $9000

C. $25000

D. $32000

Answer 1

The correct answer is D. $32000.

The taxpayer's base amount for computing taxable social security benefits is determined by adding one-half of the taxpayer's social security benefits to other income. The base amount is then compared to the taxpayer's combined income (adjusted gross income plus tax-exempt interest plus one-half of social security benefits) to determine the taxable portion of social security benefits.

In the case of a taxpayer filing Married Filing Separately and living apart from their spouse for the entire taxable year, the base amount for computing taxable social security benefits is $32,000.