What is the amount of taxable social security benefits?Frank, who is single, received $7,500 of social security benefits. His AGI before the social...

The social security benefits for a person who is single
are taxable if the total amount consisting of half the social security benefits, all
other benefits, any tax exempt income and other deductions exceeds the base amount. The
base amount is dependent on the marital status of the person and whether the tax return
is being filed as a married couple or individually.

For a
person who is single the base amount is $25,000.

Frank is
single and received $7500 as social security benefits. His income is $15000 and he also
received $100 as tax exempt interest.

Adding the required
values we get $3750 + $15,000 + $100 = $18,850. This is less than the base amount of
$25,000.

Frank does not have to pay any taxes on his social
security benefits. The taxable social security benefits is $0, the correct option is
option A.