How much of Deborah's social security benefits are taxable?

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To determine the taxable portion of Social Security benefits, we often look at the individual's combined income, which includes adjusted gross income (AGI), tax-exempt interest, and half of the Social Security benefits. For tax purposes, the IRS has specific thresholds to ascertain how much of the Social Security benefits might be taxable, and these thresholds depend on the filing status of the taxpayer.

In Deborah's situation, if the analysis calculates that her taxable benefits amount to $11,900, it indicates that her combined income falls within the range where a portion of the benefits becomes taxable. The IRS generally allows up to 50% or 85% of Social Security income to be taxable depending on the income level exceeding certain limits.

This correctly computed amount aligns with the thresholds established by the IRS, where if her combined income exceeds certain figures, then a sizeable portion of Social Security can indeed be taxable. Thus, $11,900 reflects the applicable formula and social security income analysis that would be conducted for a taxpayer in Deborah's position.

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