Pensions taxable

[Jm931]

I am recieving my deceased husband's pension through monthly payments. Should I be paying taxes on this? I currently am having taxes taken out my payments but not sure if I should.

[Vanessa A]

Possibly.  Pensions are taxable income so if your total income is above $14,600 (plus $1,550 if you are over 65) then you would need to pay taxes on that income.  Social Security can be taxable at 50% or 85% depending on your other income. 

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