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I am 66 years old and retired in 2016. In 2017 my income will be from Social Security and my pension. My husband is disabled and is on SSI. Should we have taxes with held

I would like taxes taken out if needed but I haven't been able to get a clear answer.
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1 Reply
IreneS
Expert Alumni

I am 66 years old and retired in 2016. In 2017 my income will be from Social Security and my pension. My husband is disabled and is on SSI. Should we have taxes with held

Yes.  While your husband's SSI income is not taxable, your pension and Social Security income probably will be.

Let's discuss the categories of income you will have in 2017.

Your pension

Payments from private and government pensions are usually taxable at your ordinary income rate.  However, some pension plans may be exempt from tax on the state level (especially if you are a state employee).


Social Security

Whether or not your Social Security income is taxable depends on your total income--your Social Security plus any other income. The key figure is the Modified Adjusted Gross Income (MAGI). The MAGI includes half of your Social Security, plus other sources of income. Once your MAGI exceeds the base amount for your filing status ($32,000 for Married Filing Jointly, otherwise $25,000), at least part of your Social Security income becomes taxable.

For more information please see this FAQ:  Is my Social Security income taxable?

SSI

Your husband's SSI (Supplemental Security Income) is non-taxable. From IRS Pub. 970:  "Social security benefits do not include SSI payments, which are not taxable. Do not include these payments in your income."  



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