SOCIAL SECURITY: 13% of retirees will be forced to pay a higher amount of social security tax under the new laws. Follow the steps below (Price Waterhouse). If any negative numbers, use zero.

1. Estimate 1997 social security benefits................................_______________

2. Estimate 1997 adjusted gross income (exclude taxable social security) and add 50% of the amount on line 1 plus all tax exempt interest........................______________

3. Subtract $32,000 from line 2 ($25,000 if single)....... ___________

4. Subtract $44,000 from line 2 ($34,000 if single).......... ______________

If line 4 is zero or less, you will not have to pay additional taxes on your benefits and you don't fill out the rest of this form

5 If line 3 greater than line 1, enter line 1 times 0.50...............________________

6. If line 3 is less than line 1, enter line 3 times 0.50......... ____________

7. Enter line 1 times 0.85.........................................................._____________

8. Enter line 4 times 0.85, plus the lesser of a) $6,000 ($4,500 if single) or b) line 5 or line 6 one should be blank)..................................................................... _____________

9. The lesser of line 7 or line 8 is the amount of your benefits that will be taxed next year.

Taxable Social Security benefits...................................................... ______________

10. Subtract line 5 or line 6 (one should be blank) from line 9

Additional Benefits Taxed.................................................................. _______________

11. To calculate how much additional tax you'll owe on your benefits, multiply line 10 by your anticipated tax rate. Additional tax.........................................________________

Step 12. If you have any money left, send it to me.