Is a portion of Monica's Social Security income taxable if they file jointly with David?

Monica's Social Security income can indeed be taxable when filing jointly with David, depending on their combined income. When couples file jointly, the IRS evaluates the total income, which includes different sources such as wages, interest, dividends, and Social Security benefits.

If their combined income exceeds a certain threshold, which involves the sum of modified adjusted gross income plus half of the Social Security benefits, a portion of those benefits may be subject to taxation. Specifically, if their combined income is between $32,000 and $44,000, up to 50% of the Social Security benefits may be taxable. If their income exceeds $44,000, up to 85% may be taxable.

This illustrates how the filing status and combined income levels play a significant role in determining the taxability of Social Security benefits. The option highlighting this taxation possibility aligns with the tax laws governing joint filers with regard to Social Security income.