Question & Answer: Charles E. Bennett, age 64, will retire next year and is trying to decide whether to begin collecting his Social Security be…..

Charles E. Bennett, age 64, will retire next year and is trying to decide whether to begin collecting his Social Security benefits at that time His monthly benefits will increase if he defers his starting date for the benefits. 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 B., file a joint return, have no other dependents, and dairm the standard deduction. Their only income other than the Social Security benefits are: $6,000 $40,000 The Social Security benefits for the year would be $12,000 a. Complete Worksheet 1, Figuring Your Taxable Benefits, included in IRS Publication 915 to determine the taxable portion of this couple’s taxable Social Security benefits (the publication includes a blank worksheet).