3. For the 2020 tax year, Nancy, a single taxpayer, receives $12,000 in Social Security benefits. She has adjusted gross income of $30,000, not including any Social Security income, and receives...

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Extracted text: 3. For the 2020 tax year, Nancy, a single taxpayer, receives $12,000 in Social Security benefits. She has adjusted gross income of $30,000, not including any Social Security income, and receives $5,000 of tax-exempt municipal bond interest. Nancy must include $ ?????? of her Social Security benefits in income.