In What Circumstances Would Some Portion of the Social Security

Multiple Choice

In what circumstances would some portion of the Social Security benefits received by a single taxpayer be subject to taxation? Assume that all sources of income are listed.

A) Taxpayer's only income consists of $24,000 in Social Security benefits.
B) Taxpayer receives $12,000 in Social Security benefits, dividend income of $6,000, and municipal bond interest of $3,000.
C) Taxpayer receives $10,000 in Social Security benefits, qualified pension plan benefits of $13,000, and municipal bond interest of $8,000.
D) Taxpayer receives $20,000 in Social Security benefits and qualified pension plan benefits of $14,000.
E) One-half of Social Security benefits are always taxable