My husband receives SS benefits. We filed jointly. I work full-time and do not receive SS benefits. Why is the IRS taxing my husband's SS benefits?

[bluedeb · Accepted solution]

Your spousal Social Security benefits may be taxable, depending on your total household income for the year. If your total income is more than $25,000 for an individual or $32,000 for a married couple filing jointly, you must pay income taxes on Social Security benefits. Below those thresholds, benefits are not taxed. That applies to spousal, survivor and disability benefits as well as retirement benefits.

The portion of benefits subject to taxation varies with income level. You’ll be taxed on:

• up to 50 percent of your benefits if your income is $25,000 to $34,000 for an individual or $32,000 to $44,000 for a married couple filing jointly.
• up to 85 percent of your benefits if your income is more than $34,000 (individual) or $44,000 (couple). 

[Anonymous]

doesn't matter that you are still working.  

Social Security benefits are tax free unless you earn too much income during the year - exceed the threshold of $32,000. To know whether your benefits might be taxable you have to figure your “combined income.” Add one-half of the total Social Security received during the year to all other income, including any tax-exempt interest (for example, interest from tax-exempt bonds).   if it's more than the threshold up to 85% of the total can be taxed.    

Wouldn't help to file as married filing separately because then the threshold is reduced to zero

also know should you continue to work and start drawing benefits up to 85% of your benefits could also be taxed.  

there should be a worksheet in TT showing the computation of  the taxable amount