Is all of Emily's social security income taxable?

To determine whether Emily's Social Security income is taxable, it's important to understand how the taxation of Social Security benefits works. In general, not all Social Security income is fully taxable. Instead, it depends on the individual's overall income.

Social Security benefits can be partially taxed based on other sources of income that an individual has. In many cases, if someone's combined income is above a specific threshold, a portion of their Social Security benefits may be subject to tax. However, if a recipient's income remains below certain limits, part or all of the Social Security income may be non-taxable.

While it is not accurate to state that all Social Security income is fully non-taxable, nor that it is always fully taxable, the correct understanding is that a portion may indeed be taxable, particularly if other income sources push the individual’s total earnings above those thresholds. Therefore, stating that all of Emily's Social Security income is non-taxable doesn't fully capture the nuances of how it can be taxed.

Thus, the correct choice reflects that only a portion of her Social Security benefits could be taxable based on her total income, assuming she has income from other sources that may affect her tax situation.