What is the amount of taxable social security benefits? Frank, who is single, received $7,500 of social security benefits. His AGI before the social security benefits was $15,000. He also had $100 of tax-exempt interest.A. $0B. $3,500C. $7,000D. $18,600 

Expert Answers

An illustration of the letter 'A' in a speech bubbles

The social security benefits for a person who is single are taxable if the total amount consisting of half the social security benefits, all other benefits, any tax exempt income and other deductions exceeds the base amount. The base amount is dependent on the marital status of the person and whether the tax return is being filed as a married couple or individually.

For a person who is single the base amount is $25,000.

Frank is single and received $7500 as social security benefits. His income is $15000 and he also received $100 as tax exempt interest.

Adding the required values we get $3750 + $15,000 + $100 = $18,850. This is less than the base amount of $25,000.

Frank does not have to pay any taxes on his social security benefits. The taxable social security benefits is $0, the correct option is option A.

Approved by eNotes Editorial Team

We’ll help your grades soar

Start your 48-hour free trial and unlock all the summaries, Q&A, and analyses you need to get better grades now.

  • 30,000+ book summaries
  • 20% study tools discount
  • Ad-free content
  • PDF downloads
  • 300,000+ answers
  • 5-star customer support
Start your 48-Hour Free Trial