Solution:
a. [$0]
Grady eliminates a limit of $8,200, because the value of his adjusted AGI plus 50 percent of his social security compensation ($12,100 + $250 + $4,100= $16,450), falls below the required level, including social security benefits, of ($25,000 or less for single taxpayers).
b. [$850]
Grady is single with his adjusted AGI plus 50% of his social security income is 25,000 dollars to up to 34,000 dollars (600 dollars with 50% of Social Security benefits). Its social security payments are less than (a) 50 percent ($8,200 or 50 percent= $4,100) or (b) 50 percent ($22,600 adjusted AGI+ $4,100 + − $25,000)= $850), respectively. His social security benefits are therefore taxable at $850.
c. [$6,970]
Grady provides 85% or 6,970 dollars in compensation ($8,200 to 85%), as the adjusted AGI is just over the limit of social security payments ($44,000 for a married joint).
d. [$6,970]
Married reports for its revised AGI plus 50 percent of its social security benefits ($44,000 + $700 + $4,100= $48,800) are over 44,000 dollars. Its taxable benefit in the social security program is less than (a) 85% of the benefits provided for in the social security system (85%= $8970), or (b) 85% of [$44700 adjusted AGI+ $4100 (50% of benefits provided for in the social security system) − $44000] − $4900), plus less than (1) $6000 (2), or (4,100) 50%. This renders it cheaper for less than $6,970 ($4,080 plus $4,100). His net profits are now $6,970.
e. [$6,970]
Grady had been married separately, so thus the taxable social security gain of Grady's data is less than (a) 85% (85%= $8,200); so (b) 85% (85%) of the AGI adjusted by the employer plus 50% (85%) of the social securityprofit(22,000 $+ 600 + 4,100 $(50%)= 22,695). His net profits are now $6,970.
