Use the following formula to answer the indicated question: Benefit amount = Maximum award - 0.6 (Wages in excess of ceiling)
Charles is retired and earns $10,000 per year working part-time.He is entitled to a maximum Social Security retirement benefit of $14,000.Social Security regulations allow him to earn $8,000 and still get maximum benefits.If he increases the number of hours he works and thus increases his earnings to $20,000,his total income will increase by

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Quizplus · Accepted Answer

If Charles earns $20,000, his wages in excess of the $8,000 ceiling are $12,000. The reduction in benefits is 0.6 * $12,000 = $7,200. His new benefit amount is $14,000 - $7,200 = $6,800. His total income is $20,000 + $6,800 = $26,800, an increase of $4,000 from his previous total income of $22,800 ($10,000 + $12,800).

Use the Following Formula to Answer the Indicated Question: Benefit