The Amount of Social Security Benefits Received by an Individual

question 62

Multiple Choice

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.

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Definitions:

Centralized Arbitration System

A system where arbitration, a form of alternative dispute resolution, is managed and conducted from a central point, typically for efficiency and consistency.

Federal

Pertaining to the national level of government, as opposed to state or local levels, often involved in regulating labor laws and workers' rights across the whole country.

Unionism

The practice or advocacy of organizing and joining labor unions to protect and enhance workers' rights and working conditions.

Legal Union Federation

An umbrella organization created to represent the collective interests of multiple labor unions or workers’ associations according to legal statutes.