Question

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

a. The number of quarters the individual worked.
b. The taxpayer's itemized deductions.
c. The individual's tax-exempt interest income.
d. The individual's standard deduction.

Answer 1

b. The taxpayer's itemized deductions.

The taxable portion of Social Security benefits is influenced by the individual's tax-exempt interest income, not by the number of worked quarters, itemized or standard deductions.

Step-by-step explanation:

The taxable portion of Social Security benefits may be affected by the individual's tax-exempt interest income. Neither the number of quarters the individual worked, the taxpayer's itemized deductions, nor the individual's standard deduction impacts the taxable portion of Social Security benefits.

It's important to note that the Social Security program is funded through payroll taxes, where both employers and employees contribute 6.2% of wages, up to a certain income cap.

This program is considered regressive as higher-income earners do not pay on income above a certain threshold, which disproportionately impacts lower-income earners.

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