Average Social Security benefits and taxes Use Exhibit 14.3 to estimate the average Social Security benefits for a retired couple. Assume that one spouse has a part-time job that pays $29,000 a year, and that this person also receives another $37,500 a year from a company pension. Assume that the earnings limit was $17,640 per year. Also assume for Social Security benefits the recipients are aged below 67 and will lose $1 in benefits for every $2 they earn above the earnings test amount. Also assume that they would have to pay taxes of 50% on a combined income between $32,000 and $44,000 of their Social Security benefits. If their combined income is more than $44,000, up to 85% of their Social Security benefits is subject to income tax. Round your answer to the nearest dollar.
Average Social Security benefits and taxes Use Exhibit 14.3 to estimate the average Social Security benefits for a retired couple. Assume that one spouse has a part-time job that pays $29,000 a year, and that this person also receives another $37,500 a year from a company pension. Assume that the earnings limit was $17,640 per year. Also assume for Social Security benefits the recipients are aged below 67 and will lose $1 in benefits for every $2 they earn above the earnings test amount. Also assume that they would have to pay taxes of 50% on a combined income between $32,000 and $44,000 of their Social Security benefits. If their combined income is more than $44,000, up to 85% of their Social Security benefits is subject to income tax. Round your answer to the nearest dollar.
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter14: Planning For Retirement
Section: Chapter Questions
Problem 4FPE
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Transcribed Image Text:Average Social Security benefits and taxes
Use Exhibit 14.3 to estimate the average Social Security benefits for a retired couple. Assume that one spouse has a part-time job that pays $29,000 a year, and that this
person also receives another $37,500 a year from a company pension. Assume that the earnings limit was $17,640 per year. Also assume for Social Security benefits the
recipients are aged below 67 and will lose $1 in benefits for every $2 they earn above the earnings test amount. Also assume that they would have to pay taxes of 50% on a
combined income between $32,000 and $44,000 of their Social Security benefits. If their combined income is more than $44,000, up to 85% of their Social Security benefits
is subject to income tax. Round your answer to the nearest dollar.
2$
Based on current policies, what would be the amount of social security income liable for tax? Enter zero, if no tax is liable. Round your answer to the nearest dollar.
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