Question

The taxable portion of Social Security benefits may be affected by:

a) The taxpayer's itemized deductions.

b) The individual's tax-exempt interest income.

c) The number of quarters the individual worked.

d) The individual's standard deduction.

e) None of these.

Answer 1

The taxable portion of Social Security benefits may be affected by the taxpayer's itemized deductions, the individual's tax-exempt interest income, and the individual's standard deduction.

Step-by-step explanation:

The taxable portion of Social Security benefits may be affected by a) the taxpayer's itemized deductions, b) the individual's tax-exempt interest income, and c) the individual's standard deduction. Itemized deductions are expenses that taxpayers can claim on their tax returns to help reduce their taxable income. If a taxpayer has significant itemized deductions, it could lower the taxable portion of their Social Security benefits. Tax-exempt interest income is income that is not subject to federal income tax. However, it can still affect the taxable portion of Social Security benefits. If a taxpayer has a high amount of tax-exempt interest income, it could increase the taxable portion of their Social Security benefits. The individual's standard deduction is a set amount determined by the IRS that taxpayers can subtract from their taxable income. If a taxpayer has a higher standard deduction, it could lower the taxable portion of their Social Security benefits.