A single taxpayer's provisional income may be up to what amount before Social Security benefits become taxable?

The correct amount at which a single taxpayer's provisional income may be before Social Security benefits become taxable is $25,000. Provisional income is calculated by taking the taxpayer's adjusted gross income and adding any tax-exempt interest and half of the Social Security benefits received.

For single filers, if the provisional income exceeds $25,000, some portion of the Social Security benefits will become taxable. Specifically, if provisional income is between $25,000 and $34,000, up to 50% of the benefits may be taxable. If provisional income exceeds $34,000, up to 85% of the benefits may become taxable. This tiered system helps determine the tax liability based on the level of income and ensures that only those with higher income levels face taxation on their Social Security benefits.

The options reflecting lower amounts like $15,000 and $25,000 do not capture the thresholds set by the IRS, while higher amounts like $35,000 and $45,000 exceed the initial threshold, making them relevant only for understanding the broader range of what may trigger increased taxation on benefits. The significance of $25,000 lies in its role as the threshold for single taxpayers regarding the taxation of Social Security benefits.