The Amount of Social Security Benefits Received by an Individual

Multiple Choice

The amount of Social Security benefits received by an individual that he or she must include in gross income:

A) Is computed in the same manner as an annuity [exclusion = (cost/expected return) × amount received].
B) May not exceed the portion contributed by the employer.
C) May not exceed 50% of the Social Security benefits received.
D) May be zero or as much as 85% of the Social Security benefits received, depending upon the taxpayer's Social Security benefits and other income.
E) None of these.