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Husband and wife are both 65 with an assumed annual income of $60,000, of
which $24,000 comes from social security benefits, $21,000 from a private
company pension, $10,000 from IRA distributions, and $5,000 from taxable
interest and dividends. Our hypothetical couple also owns their home
outright, so there is no mortgage interest to pay or to deduct on their tax returns.
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