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Range of Benefits Tim, a 66 years old worker, is deciding between retirement either this year or the next year. His average monthly benefit is
Range of Benefits Tim, a 66 years old worker, is deciding between retirement either this year or the next year. His average monthly benefit is determined to be $2,323.25. Assume that the benefit is the same for this year and the next year. Compute Tim's annual benefit reduction amounts in each of the following scenarios. If Tim retires this year and secures a part-time job earning $17,000, his annual benefit reduction amount is $ If Tim retires this year, secures the same part-time job, and in addition projects interest and dividend earnings of $7,000 per year, what his annual benefit reduction amount is If Tim retires next year and secures the same part-time job, the annual benefit reduction amount is Taxes on Benefits Social Security is paid in with after-tax dollars but may be subject to tax if annual income exceeds a base amount. A single taxpayer's base is $25,000. Married taxpayers filing jointly have a base of $32,000. Married taxpayers filing separately have a base of zero. Suppose Brian is retiring this year at age 67. The following table shows his data. Taxes on Benefits Social Security is paid in with after-tax dollars but may be subject to tax if annual income exceeds a base amount. A single taxpayer's base is $25,000. Married taxpayers filing jointly have a base of $32,000. Married taxpayers filing separately have a base of zero. Suppose Brian is retiring this year at age 67. The following table shows his data. Part-time salary $26,000 Annual savings account interest $250 Annual dividends $2,250 Annual interest on Dallas municipal bonds $1,150 Based on the income calculated, Brian will have % of his Social Security benefits taxed
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