Social Security exclusion of benefits question

[Ounce440]

I've taken SS benefits for all of 2024 and I am still working.  I figure my wages for this year will be high enough to have the SS benefits be taxed at near the highest level (something like 85% of the benefits?).

I'm using the Turbo Taxes' Tax Calculator to see if the withholding that I'm extrapolating for 2024 is enough to avoid writing a check to the IRS against the total of wages and SS benefits as Taxable Income.

So, my question:  Is any part of the SS benefits paid to me excluded as not taxable?  I seem to think the figure is the first $12K is excluded.

Thanks.

[marctu · Accepted solution]

So, the concept here is "combined income".   Combined Income is your adjusted gross income plus nontaxable interest and half of your Social Security benefits for the year.

• If your combined income is under $25,000 (single) or $32,000 (joint filing), there is no tax on your Social Security benefits.
• For combined income between $25,000 and $34,000 (single) or $32,000 and $44,000 (joint filing), up to 50% of benefits can be taxed.
• With combined income above $34,000 (single) or above $44,000 (joint filing), up to 85% of benefits can be taxed.

There is no exclusion amount.  Since your preference is to not cut a check, I would assume that 85% of your Social Security is taxable.   

Thanks again for the question  @Ounce440 

All the best,

Marc 

Employee Tax Expert

[Ounce440]

Ah, yes.  Combined Income.  I forgot about that term.  

Thanks for your time, @marctu 

[marctu]

You are welcome.  Thank you for your question @Ounce440