Ian, a single taxpayer, received $15,000 of Social Security retirement this year. He also received $16,000 of interest income. How much of Ian’s Social Security benefits must be included in his gross income this year?

0. none of Ian's social security benefit will be included in his gross income

Explanation:

Given the following ;

Social security retirement = $15,000

Interest income received = $16,000

Ian is a social security recipient.

Therefore to calculate his combined income:

Modified Adjusted Gross Income = $16,000

50% of social security benefit

0.5 × $15,000 = $7,500

Ian's combined income = $(7500+16000) = $23,500

For single taxpayers, if combined income is less than $25,000, then such individual does not have to pay tax on social security benefit for that year.

Therefore,

Ian's combined income < $25,000

So, none of Ian's social security benefit will be included in his gross income

c is the correct answer.

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