Question

MARRIED TAXPAYER PENSION INCOME 40000 SOCIAL SECURITY INCOME 10000 MUNICIPAL INTEREST 1000 Year 2018 what is...

MARRIED TAXPAYER PENSION INCOME 40000

SOCIAL SECURITY INCOME 10000

MUNICIPAL INTEREST 1000

Year 2018

what is the AGI?

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Answer #1

AGI is adjusted Gross Income

here it is assumed that person is married and filling separately for tax and not jointly with spouse.

Calculation of AGI

income

Pension Received=40000

interest earned =1000

1/2Social Security Interest=5000

Provisional Income= $46000

So now the 85% of SSI is taxable as it bypass the threshold of $44000

So AGI will be

Pension Income= 40000

Social Security Interest= 8500

Total AGI= $48500

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