Provisional Income Law and Legal Definition

Provisional income means the taxpayer's total income that is used to determine whether a taxpayer is liable for tax assessment on his/her social security benefits or not. The calculation of provisional income is gross income plus tax-free interest plus 50% of social security benefits plus any tax-free fringe benefits and exclusions less adjustments to income (except for the student loan deduction, tuition and fees deduction or domestic production-activities deduction). The provisional income must be calculated on Worksheet 34-1.