Provisional Income

The level of income that is used to determine whether a taxpayer is liable for tax on his or her Social Security benefits, and by how much. Provisional income is calculated by making certain adjustments to the taxpayer's gross income.

The formula for determining provisional income is as follows:

Provisional income = gross income + tax-free interest + 50% of Social Security benefits + any tax-free fringe benefits and exclusions - adjustments to income (except for the student loan deduction, tuition and fees deduction or domestic production-activities deduction)

Provisional income is calculated on Worksheet 34-1, unless the taxpayer is an active participant in a qualified plan and also has made or intends to make deductible contributions to a Traditional IRA for the year.

If the taxpayer's provisional income exceeds a certain base amount, then part of the taxpayer's Social Security benefits may become taxable.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Provisional Legislature of Oregon — Provisional Government s Salmon Seal Type …   Wikipedia

  • provisional tax — Fin tax paid in advance on the following year’s income, the amount being based on the actual income from the preceding year …   The ultimate business dictionary

  • provisional tax — /prəvɪʒənəl ˈtæks/ (say pruhvizhuhnuhl taks) noun (formerly, in Australia) tax paid in advance on income to be earned in the next financial year from sources other than salary and wages …   Australian English dictionary

  • Coalition Provisional Authority — سلطة الائتلاف المؤقتة ← …   Wikipedia

  • Communist Party USA (Provisional) — The Communist Party, United States of America (Provisional) also known as the Provisional Communist Party, Provisional Party, Provisional Party of Communists, Order of Lenin[1] or simply the Formation is a Communist political party in the United… …   Wikipedia

  • Закон о согласовании доходов 1993 г. — Важнейший законопроект, получивший силу Закона после подписания его президентом Клинтоном в августе 1993 г., направлен на сокращение дефицита федерального бюджета путем снижения расходов и увеличения налогов. Среди его основных положений… …   Финансово-инвестиционный толковый словарь

  • France — /frans, frahns/; Fr. /frddahonns/, n. 1. Anatole /ann nann tawl /, (Jacques Anatole Thibault), 1844 1924, French novelist and essayist: Nobel prize 1921. 2. a republic in W Europe. 58,470,421; 212,736 sq. mi. (550,985 sq. km). Cap.: Paris. 3.… …   Universalium

  • Germany — /jerr meuh nee/, n. a republic in central Europe: after World War II divided into four zones, British, French, U.S., and Soviet, and in 1949 into East Germany and West Germany; East and West Germany were reunited in 1990. 84,068,216; 137,852 sq.… …   Universalium

  • List of Acts of Parliament of the United Kingdom Parliament, 1840-1859 — This is an incomplete list of Acts of the Parliament of the United Kingdom for the years 1840 1859. For acts passed prior to 1707 see List of Acts of Parliament of the English Parliament and List of Acts of Parliament of the Scottish… …   Wikipedia

  • Russia — /rush euh/, n. 1. Also called Russian Empire. Russian, Rossiya. a former empire in E Europe and N and W Asia: overthrown by the Russian Revolution 1917. Cap.: St. Petersburg (1703 1917). 2. See Union of Soviet Socialist Republics. 3. See Russian… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.