It depends, Social Security of $20,700 for an individual that is single would not be taxable income, if the person has no other income. If you have other income then you would still need to include it on your return as some of it may be taxable income, depending on how much other income you have.
What state do you live in? Many states do not tax Social Security or SSI but a few do.
If you are married filing a separate return, then 85% of your Social Security becomes taxable income. If you are married and filing a joint return, then you would need to include your 1099-SSA on your return.
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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