Question

Bernie is a former executive who is retired. this year bernie received $240,000 in pension payments and $18,900 of social security payments. what amount must bernie include in his gross income

Answer 1

$256,065

Depending on total income, taxes on social security can range from 50-85%

Because of Bernie's pension income he is in the 85% bracket.

Pension + (.85 * Soc Security income)

240000+ 16065= 256,065