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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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