Shelby, single, receives $12,000 in Social Security benefits in the current year. She also receives $10,000 in taxable pension payments and $6,000 in municipal bond interest income. How much of her Social Security benefits are included in gross income?

Hana, a single woman, has $11,000 of taxable dividends, $3,000 of interest income from KLM Corporation bonds,$3,500 long-term capital gain, and $12,000 of Social Security benefits. What is Hanas taxable income?