topic Taxes on Social Security and Distributions in Retirement tax questions

Taxes on Social Security and Distributions

DCS128 — Tue, 24 Feb 2026 06:51:54 GMT

Hi - In reading the literature referenced earlier, I see that Social Security is taxed 50% -

"The MAGI includes half of your Social Security, plus other sources of income."

"Once your MAGI exceeds the base amount for your filing status ($32,000 for Married Filing Jointly)".

When filing taxes we are able to take a standard deduction of $27,300. Sorry if this is a crazy question but it makes a huge difference. Is the $32000 calculated after you take the standard deduction or before you take the standard deduction? I follow along on the forms when doing taxes but it is important to know in planning for the year! Thank you!

Re: Taxes on Social Security and Distributions

conniem123 — Wed, 26 Jul 2023 18:43:40 GMT

Hi DCS128,

Great job planning ahead! When calculating how much of your social security benefits may be taxable the MAGI, or modified adjusted gross income, is prior to the standard deduction.

I hope this information is helpful!

Connie

Re: Taxes on Social Security and Distributions

Denisev1220 — Wed, 26 Jul 2023 18:45:58 GMT

Good morning, social security benefits can be taxed at a rate of zero to 85%. The literature you are reading is to determine if any of the benefits will be taxable. You calculate 50% of your social security benefits plus other- income to arrive at the limit. This is calculated before your standard deduction or any available credits. I hope this explains the process. Feel free to reply if you still have questions and thank you for participting in this ask the expert event.

Re: Taxes on Social Security and Distributions

VolvoGirl — Wed, 26 Jul 2023 18:47:39 GMT

Before th3 Standard Deduction. And the tax on Social Security can be up to 85% (not 50%). The 50% is what is added to your other income to determine how much SS is taxable.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/retirement-benefits/social-security-income-taxable/L21rHTtDp_US_en_US

Up to 85% of Social Security 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