SUPPLEMENT TO ACCOMPANY - Pratt & Kulsrud
Elwood's gross income before considering the taxability of the Social Security benefits is $6,000; the interest is excluded from gross income. None of the $10,000 of Social Security benefits are taxable because his modified adjusted gross income is less than the $25,000 base amount. Elwood must include the lesser of: 1. .5 x ($10,000) = $5,000. or ................
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