Yes. Retirement benefits are taxable. SS is taxable anywhere from 0% to 85% depending on your situation. You can have taxes withheld from your SS benefits if your situation will remain the same for future years to avoid having to pay and be subject to an underpayment penalty. You would just need to contact the social security administration.
If you fall into the following, 85% of your social security is taxable income
- Single with income above $34,000
- Married Filing Jointly with income above $44,000
- Married Filing Separate regardless of income
If you fall into the following, 50% of your social security is taxable income
- Single with combined income between $25,000-$34,000
- Married Filing Jointly with combined income between $32,000 and $44,000
Your combined income is calculated by adding your
- AGI plus
- Nontaxable Interest plus
- 1/2 of your social security Benefits
Social Security Benefits Taxes
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