Linda and Don are married and file a joint return. In $2023,$ they received $$12,000$ in Social Security benefits and $$35,000$ in taxable pension benefits and interest. The applicable higher$/$lower bases for Social Security computations for married filing jointly are $$32,000$ and $$44,000.$

a$.$ Compute the couple's adjusted gross income on a joint return.

$

Feedback

Check My Work

b$.$ Don would like to know whether they should sell for $$100,000($at no gain of loss$)$ a corporate bond that pays $8\%$ in interest each year and use the proceeds to buy a $$100,000$ nontaxable State of Virginia bond that will pay $$6,000$ in interest each year. Assume that their marginal tax rate is $12\%.$

Although the interest received on the state bond is not taxable $,$ it still is included $$ in modified adjusted gross income, impacting the taxability of their Social Security benefits. Their AGI would be :

Feedback

$($inif

Check My Work

c$.$ In the preceding situation part $($a$),$ if Linda works part$-$time and earns $$30,000,$ by how much would Linda and Don's adjusted gross income increase?