A single taxpayer is 66 years old with the following income for 20X2:

Taxable pension $15,000

Taxable interest 3,500

Taxable dividends 4,000

Social security payments 4,000

Tax-exempt Interest 6,000

What amount of the taxpayer's social security benefits is taxable if the IRS single taxpayer base amount is $25,000?

A) $0

B) $5,500

C) $3,000

D) $2,750