Ed and Lita, age 68 and 65 respectively, are retired and collect the following income:

a. What are Ed and Lita’s taxable Social Security benefits (SSBs)?

b. If Lita’s pension is $25,000, what are Ed and Lita’s taxable Social Security benefits?

c. If Lita’s pension is $40,000, what are Ed and Lita’s taxable Social Security benefits?

d. Prepare an excel spreadsheet that will compute the taxable Social Security benefits for situations such as the above.

Transcribed Image Text:

Ed's pension distribution Lita's pension distribution Municipal interest income Ed's Social Security benefits . Lita's Social Security benefits $12,000 $15,000 $ 1,500 $10,000 $14,000