Question : Use Exhibit 14.3 to estimate the average Social Security benefits
Use Exhibit 14.3 to estimate the average Social Security benefits for a retired couple.(Exhibit 14.3 states $2176 for retired couple)
Assume that one spouse has a part-time job that pays $24,500 a year, and that this person also receives another $39,500 a year from a company pension. Assume, that the earnings limit was $15,720 per year. Also assume for Social Security benefits the recipients are aged below 67 and will lose $1 in benefits for every $2 they earn above the earnings test amount. Also assume that they would have to pay taxes of 50% on a combined income between $32,000 and $44,000, of their Social Security benefits. If their combined income is more than $44,000, up to 85% of their Social Security benefits is subject to income tax. Round your answer to the nearest dollar.
Please show work***