Which of the following statements about taxation of Social Security retirement benefits under federal law is (are)true?
I.Social Security retirement benefits are never considered taxable income.
II.Up to 85 percent of Social Security retirement benefits may be considered taxable income,depending on the amount of other income received by the beneficiary.

Question

Quizplus · Accepted Answer

Only statement II is true. Up to 85 percent of Social Security retirement benefits may be considered taxable income, depending on the amount of other income received by the beneficiary. This provision was added in 1983 to ensure that higher-income taxpayers pay taxes on a portion of their Social Security benefits. Statement I is false because Social Security retirement benefits can be considered taxable income under certain circumstances.

Which of the Following Statements About Taxation of Social Security