Problem 4-56 (LO. 4) Charles E. Bennett, age 64, will retire next year and is trying to decide whether to begin collecting his Social Security benets at that time. His monthly benets will increase if he defers his starting date for the benets. He has asked you to estimate how much his income tax will increase as a result of collecting Social Security. Charles and his wife Bernice 3., le a joint return, have no other dependents, and claim the standard deduction. Their only income other than the Social Security benets are: Interest and dividends $6,000 Taxable pension $40,000 The Social Security benets for the year would be $12,000. a. Complete Worksheet 1, Figuring Your Taxable Benets, included in IRS Publication 915 to determine the taxable portion of this couple's taxable Social Security benets (the publication includes a blank worksheet). Worksheet 1. Figuring Your Taxable Benefits Keep for Your Records a Before you begin: I If you are married ling separately and you lived apart from your spouse for all of 2016, enter "D" to the right of the word "benets" on Form 1040, line 20a, or Form 1040A, line 14a. - Do not use this worksheet if you repaid benets in 2016 and your total repayments (box 4 of Forms SSA-1099 and RRB1099) were more than your gross benets for 2016 (box 3 of Forms SSA-1099 and RRB-1099). None of your benets are taxable for 2016. For more information. see W. - If you are ling Form 8815, Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989, do not include the amount from line 8a of Form 1040 or Form 1040A on line 3 of this worksheet. Instead, include the amount from Schedule B (Form 1040A I . I ' - 1. Enter the total amount from box 5 of ALL your Forms SSA1099 and RRB1099. Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a ............................... ......... 1. @ J 2- Enter onehalf of line 1 ...................................................... 2' J 3. Combine the amounts from: Form 1040.- Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21 a-____ dan-_I:___-l n- n- an 4-. m. ___l 4-1 -[EIJ Assignment Some: 100% All work saved