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.