How will receiving Social Security affect my tax return?

Forum|Forum|3 years ago
July 26, 2023
5 replies
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Ask the Experts - Retirement - July 2023

Best answer by Ksimenson

Hello,

It all depends on what other income you are earning. If you are only receiving Social Security, then you will not have any tax on that income. In fact, taxpayers with only Social Security (based on their individual sitations) usually do not need to file a tax return if their taxable income is zero and they have no withholdings. If you earn other income, then your Social Security could be taxed up to 85%. This information below helps to explain how Social Security is taxed.

Do I pay Social Security tax or income tax on my Social Security benefit payments?

If you earn between $25,000 and $34,000 per year as a single filer (or $32,000 to $44,000 if you’re married filing jointly), you will pay income taxes on up to 50% of your Social Security benefits. If you earn more than $34,000 (or $44,000 if you’re married filing jointly), you’ll pay taxes on up to 85% of your benefits. You will never be taxed on more than 85% of your Social Security benefits.

I got the above information from this article: https://turbotax.intuit.com/tax-tips/irs-tax-return/a-guide-to-social-security-tax/L5QxGNcJL

I suggest that you click on this link or copy and paste it into a browser.

Please reach back if you have further questions that I have not addressed.

Happy Retirement!!

K

KsimensonAnswer

Level 6

Hello,

It all depends on what other income you are earning. If you are only receiving Social Security, then you will not have any tax on that income. In fact, taxpayers with only Social Security (based on their individual sitations) usually do not need to file a tax return if their taxable income is zero and they have no withholdings. If you earn other income, then your Social Security could be taxed up to 85%. This information below helps to explain how Social Security is taxed.

Do I pay Social Security tax or income tax on my Social Security benefit payments?

If you earn between $25,000 and $34,000 per year as a single filer (or $32,000 to $44,000 if you’re married filing jointly), you will pay income taxes on up to 50% of your Social Security benefits. If you earn more than $34,000 (or $44,000 if you’re married filing jointly), you’ll pay taxes on up to 85% of your benefits. You will never be taxed on more than 85% of your Social Security benefits.

I got the above information from this article: https://turbotax.intuit.com/tax-tips/irs-tax-return/a-guide-to-social-security-tax/L5QxGNcJL

I suggest that you click on this link or copy and paste it into a browser.

Please reach back if you have further questions that I have not addressed.

Happy Retirement!!

M

mjohnsonsr2002Author

Level 2

Thank you so very kindly!

J

JandKit

Level 6

Hi mjohnsonsr2002,

Thank you for this question! Social Security is means tested! That means that social security is usually not subjected to taxes until an income level is reached. The maximum amount of social security that can be taxed is 85%.

As in most cases, married filing separately and living in the same home as the spouse causes income to be taxed immediately.

If single, the social security income is taxed when 1/2 of the social security and other income exceeds $25,000.

If married filing jointly, sometimes called th married penalty, when 1/2 of the social security and other income exceeds $34,000, the social security becomes taxable.

Ido hope that this answers your questions!!!

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

M

mjohnsonsr2002Author

Level 2

Thank you so very kindly for your response!

evelynm

Employee Tax Expert

Here is a another great resource: https://turbotax.intuit.com/tax-tips/irs-tax-return/a-guide-to-social-security-tax/L5QxGNcJL

Have an amazing day. Evelyn M (CPA 20+ years). I would love a thumbs up :) + Mark the post that answers your question by clicking on "Mark as Best Answer".