The amount of Social Security benefits received by an individual that he or she must include in gross income:
a. Is computed in the same manner as an annuity [exclusion = (cost/expected return) × amount received].
b. May not exceed the portion contributed by the employer.
c. May not exceed 50% of the Social Security benefits received.
d. May be zero or as much as 85% of the Social Security benefits received, depending upon the taxpayer's Social Security benefits and other income.
e. None of these.
Answer: d May be zero or as much as 85% of the Social Security benefits received, depending upon the taxpayer's Social Security benefits and other income