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Since the $31,200 is less than the $32,000 amount allowed married couples filing a joint return, none of the Social Security benefits are taxable.28. Ron and Gayle, both over age of 65, have the following sources of income:Consulting Income36,000Social Security12,000Tax-Exempt Interest4,000
Interest Income4,000Their itemized deductions total $16,000. Compute their taxable income.35. Educational Savings Bonds(¶5075): Q: Beth, who is single, redeems her Series EE bonds. She receives 12,000, consisting of 8,000 principal and 4,000 interest. Beth’s qualified educational expenses total $16,500. Further, Beth’s AGI for the year is40,000. Determine what, if any, interest income Beth must include in her gross income.
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Taxation in the United States, social security benefits