What would Morris and June's combined annual tax liability be on June's pension benefit, assuming their respective MTRs?

To determine the combined annual tax liability on June's pension benefit, one must consider the marginal tax rates (MTRs) for both Morris and June. When assessing tax liabilities, it is vital to calculate how the income from the pension benefit interacts with their respective MTRs, as each individual's tax rate can affect the total tax due.

In this scenario, June's pension benefit would be included as taxable income when calculating their overall tax liability. Depending on their income levels and applicable deductions or credits, June's MTR will determine how much of her pension benefit is taxed. If Morris also has income, his MTR may also influence the total tax liability depending on how their incomes are combined or if any income-splitting provisions apply.

Option B reflects the correct calculation of the tax liability based on June's income and applicable tax rates. It incorporates factors like tax credits or deductions they might be eligible for that could effectively lower the overall tax burden. This option has taken into account not just June's income but also the overall impact on household taxes given their combined financial situation.

Therefore, considering the calculations and potential tax implications, option B accurately represents the couple's combined annual tax liability on June's pension benefit.