How can I calculate how much of our social security is taxable

[Dliotta]

With the new OBBA I want to prepare for year end and make sure I don't get hit with penalties for not paying enough in my estimated tax payments.  So I need to calculate how much of our social security will be taxable and combine it with other income.  Everything I read says "up to" 50% or "up to" 85% but I can't find the exact number or calculation anywhere.

[K M W]

The One Big Beautiful Bill (OBBB) does NOT make any changes to how social security is taxed.  Rather, the OBBB provides a new, temporary deduction for individuals aged 65 and older. This deduction is $6,000 per eligible individual ($12,000 for a married couple where both spouses qualify). This is in addition to the standard deduction already available to seniors, and is available for taxpayers age 65 or older that do not  exceed the income thresholds (the additional deduction begins to phase out when Modified Adjusted Gross income exceeds $75,000 for single files, or $150,000 for married couples filing jointly).  Note that this new deduction for seniors is a temporary provision, effective for tax years 2025 through 2028.

So, how do you determine how much of your social security is taxable?  Generally speaking, you take half of your social security benefits and all your other taxable income and add them together. Your social security will start to become taxable if:

• You are filing single, head of household, or qualifying surviving spouse and the above amount is more than $25,000.
• You are filing jointly, and the above amount is more than $32,000.

• You are married, filing separately, and the above amount is more than zero (more than $25,000 if you lived apart from your spouse for all of the year).

If you are above the thresholds listed, then you would have to complete an IRS worksheet to determine how much of your social security is taxable - knowing that up to 85% of your benefits could be taxable. The IRS has a worksheet which can be found on page 7 of IRS Publication 915 that you can use to determine how much of your benefits would be taxable. You can find that publication at this link:  IRS Publication 915 

So, grab a pencil and a calculator, and head to IRS Publication 915 to use the worksheet provided to enter your estimated income for the year and determine how much of your social security will be taxable to you.

[liberTE]

The Social Security Income is taxable depending on the combined income and based on the filing status income limitations.

Deduction for Seniors

• New deduction: Effective for 2025 through 2028, individuals who are age 65 and older may claim an additional deduction of $6,000. This new deduction is in addition to the current additional standard deduction for seniors under existing law.
  • The $6,000 senior deduction is per eligible individual (i.e., $12,000 total for a married couple where both spouses qualify).
  • Deduction phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers).
• Qualifying taxpayers: To qualify for the additional deduction, a taxpayer must attain age 65 on or before the last day of the taxable year.
• Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers.
  • Taxpayers must:
    • include the Social Security Number of the qualifying individual(s) on the return, and
    • file jointly if married, to claim the deduction.

Pls see these IRS Publications:

Publication 915 (2024) Social Security and Equivalent Railroad Retirement Benefits 

One Big Beautiful Big Act: Tax Deductions for working Americans and Seniors 

Pls click this below link for the Interactive Tax Assistant from the IRS website to determine if your social security income is taxable. You may need to click the next button and put the tax year from the drop down arrow and follow the succeeding instructions.

Are my Social Security or railroad retirement tier I benefits taxable? 

[Terri Lynn]

Here's how to calculate how much of your Social Security benefits may be taxable:

1. Find Your "Combined Income": This is not your standard Adjusted Gross Income (AGI). To calculate it, you add:

• First take your AGI from sources other than Social Security. 
• Then any tax-exempt interest (like from municipal bonds).
• and then add half of your total Social Security benefits for the year.

2. Use Your Filing Status and Combined Income to Determine Taxability: The portion of your benefits that is taxable depends on your filing status and combined income.

• Individual Filers: (Single, Head of Household, Qualifying Widow(er)):
  • Combined income under $25,000: None of your benefits are taxable.
  • Combined income between $25,000 and $34,000: Up to 50% of your benefits may be taxable.
  • Combined income over $34,000: Up to 85% of your benefits may be taxable.
• Married Filing Jointly:
  • Combined income under $32,000: None of your benefits are taxable.
  • Combined income between $32,000 and $44,000: Up to 50% of your benefits may be taxable.
  • Combined income over $44,000: Up to 85% of your benefits may be taxable.
• Married Filing Separately:
  • You'll likely have to pay taxes on your benefits at a higher rate if you lived with your spouse at any point during the year.

 To help you calculate the taxable portion of your Social Security benefits, use TurboTax and IRS tools. You can use: the IRS Tax Withholding  Estimator,  or Free Tax  and Money Saving Tools TurboTax. The exact calculation can be complex. You can use TurboTax software to calculate or  the IRS has worksheets that can be used to help you figure out the exact taxable amount found in Publication 915.

For more information see:

• Social Security and Equivalent Railroad Retirement Benefits=Publication 915
• Social Security and Equivalent Railroad Retirement Benefits: Topic 423
• Is Social Security Income Taxable? TurboTax 

Please feel free to reach backout with any additional questions or concerns you might have!

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