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Retirement tax questions
Yes, the taxable amount of your social security income is on a sliding basis, Once you have exceeded the threshold the taxable amount starts at 50% and can reach a maximum of 85%
According to the IRS, the quick way to see if you will pay taxes on your Social Security income is to take one-half of your Social Security benefits and add that amount to all your other income, including tax-exempt interest.
For single people, your Social Security benefits aren't taxed if your provisional income is less than $25,000. The threshold is $32,000 if you're married and filing a joint return. If your provisional income is between $25,000 and $34,000 for a single filer, or from $32,000 to $44,000 for a joint filer, then up to 50% of your Social Security benefits may be taxable. If your provisional income is more than $34,000 on a single return, or $44,000 on a joint return, up to 85% of your benefits may be taxable.
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