Which of the Following Statements Is (Are)true with Respect to the Social

question 35

Multiple Choice

Which of the following statements is (are) true with respect to the Social Security earnings test?
I.The earnings test does not apply to dividends,interest,and rental income.
II.The earnings test does not apply to work earnings for those individuals who have reached the full retirement age under Social Security.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Interest

The charge for borrowing money or the compensation paid to depositors on their deposits, usually expressed as an annual percentage rate.

Unpaid Balance

The amount of money that is still owed on a loan or credit line that has not yet been paid.

Loan Principal

The amount of money that is borrowed and must be repaid, not including interest or any other charges.

Property Tax Payable

A liability representing taxes due on the property owned by an individual or company, typically paid annually.