A question on Social Security benefits - A. Ray and Sally, married, receive $40,000 in combined social security benefits ($25,000 him; $15,000 her) each year, along with a taxable pension of $120,000 (all HERS). They also have a $1,000,000 tax free bond jointly owned investment which pays them $20,000, at 2%, yearly. How much of the $40,000 social security benefit is taxable?