Solved:

Checkmark

Answered by AI, Verified by Human Experts

All of Rebecca's social security benefits are taxable according to the Social Security Benefits Worksheet.

All of Rebecca's social security benefits are taxable according to the Social Security Benefits Worksheet.A) True
B) False

Final answer:The statement that all social security benefits are taxable is false; up to 85% may be taxable depending on the individual's income. The Social Security tax can be considered regressive as it does not apply to income above a certain threshold. To find out if benefits are taxable, one must use the IRS-provided worksheet. Therefore, the correct option is B) FalseExplanation:The assertion that all of Rebecca's social security benefits are taxable according to the Social Security Benefits Worksheet is false. Social Security benefits may be taxable up to 85% depending on other income sources and the tax return filing status. It is a common misconception that 100% of social security benefits are taxable for everyone; however, this is not the case. The actual portion of social security benefits that are subject to taxation depends on the combined income level including one-half of the social security benefits, plus other income such as wages, self-employment, interest, dividends, and other taxable income that must be reported on the tax return.To determine if Rebecca's benefits are taxable, she would need to complete a worksheet provided by the Internal Revenue Service (IRS), which applies specific base amounts that depend on her filing status. Additionally, the Social Security tax itself is often discussed as being regressive, as income above a certain threshold ($113,000 as noted, which is now higher due to adjustments for inflation) is not subject to the Social Security tax, thus impacting lower income earners to a greater extent proportionally. This illustrates the ongoing discussions about increasing taxes or decreasing benefits to ensure the long-term viability of the system....

Unlock full access for 72 hours, watch your grades skyrocket.
For just $0.99 cents, get access to the powerful quizwhiz chrome extension that automatically solves your homework using AI. Subscription renews at $5.99/week.