Social Security is it taxable

kdoggdad — Sat, 01 Jun 2019 07:01:40 GMT

From 0% to 85% of Social Security payments are taxable, d...

BMcCalpin — Sat, 01 Jun 2019 07:01:41 GMT

From 0% to 85% of Social Security payments are taxable, depending on how much other income you had and your filing status.

Generally, the computation is as follows:

"To find out whether any of your benefits may be taxable, compare the base amount for your filing status with the total of:

One-half of your benefits; plus
All your other income, including tax-exempt interest

Base amount. Your base amount is:

· $25,000 if you are single, head of household, or qualifying widow(er);
· $25,000 if you are married filing separately and lived apart from your spouse for all of 2016
· $32,000 if you are married filing jointly; or
· -0- if you are married filing separately and lived with your spouse at any time during 2016."

Thus if you were single and made $22,000 in Social Security payments and nothing else, none of your SS would be taxable because one-half of your SS is $11,000, which is less than your base of $25,000.

But if you are married, received $30,000 in SS payments, and also received $20,000 in a distribution from an IRA, then the formula is:

One-half of your benefits is $15,000 - add to $20,000 outside income, which totals $35,000, which is more than your base of $32,000...so some of your SS would be taxable.

Please see IRS Publication 17 for more explanation and more examples, especially Worksheet 11-1.

topic Social Security is it taxable in Retirement tax questions

Social Security is it taxable

From 0% to 85% of Social Security payments are taxable, d...