Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Social Security

Calculating the Taxable Portion

Check Your Knowledge

Question 1 of 2

Anna and Alfredo are Puerto Rico residents who receive:

  • Interest income from a bank in Puerto Rico
  • Exempt Puerto Rico source income from a pension of the Puerto Rico Water Authority
  • Social Security benefits

True or False? To calculate the taxable portion of their Social Security benefits, compare Anna and Alfredo's base amount with the total of their interest income, exempt Puerto Rico income, and half their Social Security benefits.