"A.G. Kalman" <agkdisposable-mtm[at]yahoo.com> wrote:
- quote -

Thanks -- exactly what I needed.

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Ray wrote:

- quote -

There's a basic calculator at:
http://www.mgcpa.com/calculators/y2006/socsec.html

--
Alan
http://taxtopics.net

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rayj.balt[at]DELETETHISverizon.net (Ray) posted:

- quote -

It's dependent on your filing status: MFJ, $32,000 +
$12,000 =3D 50%; then, depending on the total SS received by
the couple, it quickly escalates to the maximum of 85%.
And, just to complicate the formula, it isn't simply tied to
AGI -- it's really _M_AGI (MAGI) or "Modified Adjusted Gross
Income."

The principal (though not only) modification many folks
suffer from is "tax-exempt income." Those "tax-free" muni
bonds get added into your AGI on the Social Security
Worksheet. This has long been decried as an "end-around" of
the prohibition on taxation of the several State's sources
of capital for public works -- but nobody's succeeded in
changing it.

For filing status Single: $25,000 + $9,000 is the end point
for the 50%; then on up to 85%.

Married Filing Separately (and you lived with your wife at
any time during the tax year): Go directly to Jail -- er,
to 85%. No allowances, just simply multiply your total SS
income by 85%.

wbrenner[at]nospamplease.net (William=A0Brenner) kicked in with this:

- quote -

The "magic" was a pun, I trust. The fact that it matches
the "M" in "modified" has to be more than a coincidence.

But you did provoke some minor effort on my part to
determine a "magic" figure that works. In fact, that's
frustratingly dependent on the total SS received by the
couple (in an MFJ situation).

So I grant you full credit for the provocative question
which underlines the diabolical qualities of the Worksheet.
Indeed, "what hath [the IRS] wrought?"

Bill

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Ray wrote:

- quote -

If I may add a corollary question:
What is the magic AGI number at which taxation of the maximum
85% of SS kicks in? Thus allowing one to avoid that confounded
worksheet?

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Can anyone tell me where I might find a calculator to tell
what percent of Social Security income is taxable, based on
AGI?

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >