Taxable income

Forum|Forum|5 years ago
July 15, 2021
4 replies
35 views

Social security income prior to part B medical deduction is $33,780.00 , investment income $8000.00 total 41,780 will I pay federal taxes ? I’m single age 68 at what income will I pay taxes and am I allowed all normal tax deductions on that amount?

Best answer by DoninGA

Based on your numbers, no your benefits are not taxable.

$33,780/2 + $8000 = $24,890 which is less than $25,000 filing as Single.

Up to 85% of Social Security Retirement/Disability/Survivors benefits becomes taxable when all your other income plus 1/2 your social security reaches:

Married Filing Jointly - $32,000
Single or Head of Household - $25,000
Married Filing Separately - 0

DoninGA

Answer

Level 15

Based on your numbers, no your benefits are not taxable.

$33,780/2 + $8000 = $24,890 which is less than $25,000 filing as Single.

Up to 85% of Social Security Retirement/Disability/Survivors benefits becomes taxable when all your other income plus 1/2 your social security reaches:

Married Filing Jointly - $32,000
Single or Head of Household - $25,000
Married Filing Separately - 0

76maddogAuthor

Level 2

Thanks just a quick follow up , if I end up over $25,000 single income based on your tax table reply , do I get to use home mortgage , personal exemption to bring me back under for the 25,000 max for no taxes or will only the income over the 25,000 be taxable before or after my exemptions for example let’s say I end up at 35,000 after half social security income credit

76maddogAuthor

Level 2

Do personal exemptions like mortgage and tax deducts etc etc reduce taxable income after the 25,000 single income max and do you deduct the typeB medical premium for total social security income