Which of the Following Is True About Social Security Retirement

question 38

Multiple Choice

Which of the following is true about Social Security retirement benefits?

• A)Benefits are subject to federal income tax.
• B)An earnings test exists for those beneficiaries aged 50 and under.
• C)Eligibility rules do not exist to receive benefits.
• D)Benefits are entirely free from state income tax.
• E)The earnings test increases a person's incentive to retire.

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Definitions:

Profit Earning

The net income that a company generates, calculated as revenues minus expenses, taxes, and costs.