Whether or not you will pay federal taxes on your Social Security income depends on your filing status and whether or not you have other income (i.e. Wages, dividends, pension distributions, etc.)
Assuming that the $26,500 Social Security income was your only source of income for 2021, then you will not have to pay federal taxes on it, UNLESS you are using the Married Filing Separate filing status and you lived with your spouse at any time during the year. However, if you have any other sources of income, up to 85% of your Social Security income may be taxable. You will not have to pay state income taxes on your Social Security income because Florida does not have state income tax.
Once your other income plus 1/2 of your Social Security income exceeds the limits below, up to 50% of your benefits may be taxable:
- $32,000 - Married Filing Joint
- $25,000 - Head of Household, Single, Qualifying Widow, Married Filing Separate (did not live with spouse at all during the year)
- $0 -Married Filing Separate and lived with spouse at any time during the year
Once your other income plus 1/2 of your Social Security exceeds the limits below, up to 85% of your benefits may be taxable:
- $44,000 - Married Filing Joint
- $34,000 - Head of Household, Single, Qualifying Widow, Married Filing Separate (did not live with spouse at all during the year)
- $0 -Married Filing Separate and lived with spouse at any time during the year
To see how the taxable portion of your Social Security income is calculated, you can check out this worksheet in IRS Publication 915 or walk through the questions in this IRS Interactive Tax Assistant. TurboTax will calculate the taxable portion of your Social Security income automatically once you enter all of your tax documents.
Finally, for more information, check out these TurboTax Help Articles:
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