Mr. & Mrs. Bronson are both over 65 years of age and are filing a joint return. Their income this year consisted of the following:
Taxable interest $ 6,000
Taxable dividends 9,000
Social Security payments (combined) 20,000
Tax-exempt interest 5,000
Taxable pension 11,000
They did not have any adjustments to income. What amount of Mr. & Mrs. Bronson's social security benefits is taxable this year?
A) $-0-
B) $4,500
C) $10,000
D) $20,000
Answer: B