The correct statements regarding the taxation of Social Security retirement benefits are C) I, II, and III.
I. The first threshold or base amount is $25,000 of provisional income for all single, unmarried taxpayers.
II. The first threshold or base amount is $32,000 of provisional income for married taxpayers filing jointly.
Step-by-step explanation:
Thresholds for Taxation:
For single, unmarried taxpayers, up to 85% of Social Security benefits may be subject to taxation if provisional income exceeds $25,000.
For married taxpayers filing jointly, up to 85% of benefits may be taxable if provisional income exceeds $32,000.
Provisional Income:
Provisional income is a key factor in determining the taxability of Social Security benefits. It includes adjusted gross income, tax-exempt interest, and half of the Social Security benefits.
question:
Social Security retirement income beneficiaries who have significant incomes must include up to 85% of their Social Security benefits as income for federal income tax purposes. In regard to the taxation of Social Security retirement benefits, which of these statements are CORRECT?
The first threshold or base amount is $25,000 of provisional income for all single, unmarried taxpayers.
The first threshold or base amount is $32,000 of provisional income for married taxpayers filing jointly.
The second threshold or base amount is $34,000 of provisional income for all single (unmarried) taxpayers.
The second threshold or base amount is $44,000 of provisional income for married taxpayers filing jointly.
A) I, II, III, and IV
B) III and IV
C) I, II, and III
D) I and II