Approximately 40% of people who get Social Security are required to pay federal income taxes on their benefits. The above takes place when you have OTHER INCOME in addition to your Social Security Benefits that is SIGNIFICANT, such as : wages, earnings from self-employment, interest, dividends, and other taxable income that must be reported on your tax return.
You will pay tax on your Social Security benefits based on Internal Revenue Service (IRS) rules if you:
- File a federal tax return as an "individual" and your combined income* is
- Between $25,000 and $34,000, you may have to pay income tax on up to 50% of your benefits.
- More than $34,000, up to 85% of your benefits may be taxable.
- File a joint return, and you and your spouse have a combined income* that is
- Between $32,000 and $44,000, you may have to pay income tax on up to 50% of your benefits.
- More than $44,000, up to 85% of your benefits may be taxable.
- Are married and file a separate tax return, you probably will pay taxes on your benefits.
* Your adjusted gross income
+ Nontaxable interest
+
½ of your Social Security benefits= Your "
combined income"
Income Taxes and Your Social Security Benefit **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
