Michael, a 62-year-old single man, is considering beginning his Social Security benefits to
supplement his income of $18,000 per year. How much will he lose in Social Security benefits due to
the earned income restrictions?
A)$1 for every $4 earned
B)$0
C)$1 for every $2 earned
D)$1 for every $3 earned - CORRECT ANS - B)$0
Because his earned income is below the $21,240 (2023) earnings cap for singles, he will not be
impacted by the earned income benefit reduction.
If provisional income exceeds all the thresholds given, then a maximum of ___________ of Social
Security benefits are subject to taxation.
A)20%
B)37%
C)85%
D)50% - CORRECT ANS - C)85%
If provisional income exceeds the stated threshold, a maximum of 85% of the excess amount is
taxable as ordinary income.
Brent and Carol are married and file jointly. They have an AGI of $70,000 and they receive a
combined Social Security benefit of $15,000. They have no tax-exempt income. What is the
maximum percentage of their Social Security benefit that will be subject to taxation?
A)100%
B)85%
C)0%
D)50% - CORRECT ANS - A)100%
, Provisional income = $77,500. This is well over the $44,000 threshold, so 85% of their Social
Security benefit will be the maximum amount subject to taxation.
A worker's primary insurance amount (PIA) is the amount they receive from Social Security
A)as a survivor benefit.
B)in their first year of retirement, regardless of age.
C)at age 62.
D)if he or she began payments at full retirement age. - CORRECT ANS - D) if he or she began
payments at full retirement age.
The PIA is the amount the worker would receive if he or she began payments at full retirement age.
For a worker whose full retirement age is 66 or later, the annual delayed retirement credit percentage
for the years you delay receipt of benefits beyond (FRA) is
A)8%.
B)5%.
C)32%.
D)6%. - CORRECT ANS - A) 8%.
For those whose full retirement age is 66, they will receive an 8% "raise" for each year they delay
filing after FRA, up until a maximum age of 70. This equals to a total increase of 32% above their
primary insurance amount (PIA). The delayed retirement credit is accrued 8/12th of a percent per
month for each month the worker delays starting Social Security retirement benefits based on their
own record. This increase in the worker's benefit also increases the spouse's survivor benefit if the
worker predeceases the spouse.
Delaying receipt of benefits (for example until age 70) will result in all of the following except
A)receipt of delayed retirement credits.
B)larger survivor benefits for the surviving spouse.
C)higher annual cost-of-living adjustments.
D) permanently reduced benefit amount. - CORRECT ANS - D) permanently reduced benefit amount.
supplement his income of $18,000 per year. How much will he lose in Social Security benefits due to
the earned income restrictions?
A)$1 for every $4 earned
B)$0
C)$1 for every $2 earned
D)$1 for every $3 earned - CORRECT ANS - B)$0
Because his earned income is below the $21,240 (2023) earnings cap for singles, he will not be
impacted by the earned income benefit reduction.
If provisional income exceeds all the thresholds given, then a maximum of ___________ of Social
Security benefits are subject to taxation.
A)20%
B)37%
C)85%
D)50% - CORRECT ANS - C)85%
If provisional income exceeds the stated threshold, a maximum of 85% of the excess amount is
taxable as ordinary income.
Brent and Carol are married and file jointly. They have an AGI of $70,000 and they receive a
combined Social Security benefit of $15,000. They have no tax-exempt income. What is the
maximum percentage of their Social Security benefit that will be subject to taxation?
A)100%
B)85%
C)0%
D)50% - CORRECT ANS - A)100%
, Provisional income = $77,500. This is well over the $44,000 threshold, so 85% of their Social
Security benefit will be the maximum amount subject to taxation.
A worker's primary insurance amount (PIA) is the amount they receive from Social Security
A)as a survivor benefit.
B)in their first year of retirement, regardless of age.
C)at age 62.
D)if he or she began payments at full retirement age. - CORRECT ANS - D) if he or she began
payments at full retirement age.
The PIA is the amount the worker would receive if he or she began payments at full retirement age.
For a worker whose full retirement age is 66 or later, the annual delayed retirement credit percentage
for the years you delay receipt of benefits beyond (FRA) is
A)8%.
B)5%.
C)32%.
D)6%. - CORRECT ANS - A) 8%.
For those whose full retirement age is 66, they will receive an 8% "raise" for each year they delay
filing after FRA, up until a maximum age of 70. This equals to a total increase of 32% above their
primary insurance amount (PIA). The delayed retirement credit is accrued 8/12th of a percent per
month for each month the worker delays starting Social Security retirement benefits based on their
own record. This increase in the worker's benefit also increases the spouse's survivor benefit if the
worker predeceases the spouse.
Delaying receipt of benefits (for example until age 70) will result in all of the following except
A)receipt of delayed retirement credits.
B)larger survivor benefits for the surviving spouse.
C)higher annual cost-of-living adjustments.
D) permanently reduced benefit amount. - CORRECT ANS - D) permanently reduced benefit amount.
