What is the maximum taxable amount of Hank's Social Security benefits?

To determine the maximum taxable amount of Hank's Social Security benefits, it's essential to understand how Social Security benefits are taxed. The taxation of Social Security benefits depends on the recipient's provisional income, which is the sum of adjusted gross income, tax-exempt interest, and half of the Social Security benefits.

The IRS uses a specific calculation to determine how much of the Social Security benefits may be taxable:

1. Calculating Provisional Income: For a single filer, if the provisional income is below $25,000, none of the Social Security benefits are taxed. If it is between $25,000 and $34,000, up to 50% of the benefits may be taxable. If the provisional income exceeds $34,000, up to 85% of the benefits may be taxable.

2. Determining Taxable Amount: If Hank's calculated provisional income falls within the range that allows for 85% taxation, then a significant portion of his benefits would be subject to tax.

In this case, the most appropriate answer reflects circumstances where Hank's income and the calculation of taxable Social Security benefits indicate that his maximum taxable amount is $9,965. This figure aligns with the method of applying the tax rates on Social