Problem 4-57 (LO. 4) 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 claim the standard deduction. Their only income other than the Social Security benefits are: Interest and dividends $6,000 Taxable pension $40,000 The Social Security benefits for the year would be $12,000. Enter all amounts as positive numbers. 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), Worksheet 1. Figuring Your Taxable Benefits Keep for Your Records Before you begin: If you are married filing separately and you lived apart from your spouse for all of 2018, enter "D" to the right of the word "benefits" on Form 1040, line 5a. Do not use this worksheet if you repaid benefits in 2018 and your total repayments (box 4 of Forms SSA-1099 and RRB-1099) were more than your gross benefits for 2018 (box 3 of Forms SSA-1099 and RRB-1099). None of your benefits are taxable for 2018. For more information, see Repayments More Than Gross Benefits . If you are filing Form 8815, Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989, do not include the amount from line 2b of Form 1040 on line 3 of this worksheet. Instead, include the amount from Schedule B (Form 1040), line 2 1. Enter the total amount from box 5 of ALL your Forms SSA-1099 and Check My Work Pre