How Social Security Income is Taxed
Excited about retiring in the near future? As it gets closer you’re no doubt making sure and double checking that all the numbers are adding up and that’s a smart move. When you’re planning your retirement you have look at everything – such as all of your income streams during retirement and your living expenses you’ll be expecting.
Something that you also want to check are taxes you’d be expected to pay, specifically taxes on your Social Security income.
Social Security
Will My Social Security Income Be Taxed?
Not everyone has to pay taxes on their Social Security benefits. To see if your Social Security will be taxed, you have to look at your *combined income and your marital status. According to IRS Publication 915 (Social Security and Equivalent Railroad Retirement Benefits), the income thresholds for Social Security are:
- If you’re single and your total combined income for the year is between $25,000 and $34,000, then up to 50% of your benefits can be taxed.
- If you’re single and your total combined income for the year is greater than $34,000, then up to 85% of your benefits can be taxed.
- If you’re married filing jointly and your total combined income for the year is between $32,000 and $44,000, then up to 50% of your benefits can be taxed.
- If you’re married filing jointly and your total combined income for the year is greater than $44,000, then up to 85% of your benefits can be taxed.
* Combined Income-Combined income when figuring tax on social security income is Adjusted Gross Income plus nontaxable interest plus 1/2 of social security benefits.
SSA-1099: You’ll Need It
If you’re already receiving Social Security benefits, you can use your SSA-1099 form (Social Security Benefit Statement) to determine how much of your benefits are taxable. You should receive it in January and should have the information required for the previous year.
When you file taxes, you’ll need this form, so please keep it in a safe place. Don’t worry about figuring how much of your social security income is taxable. TurboTax easily makes the behind the scenes calculations and figures out the accurate amount of social security income that is taxable based on your income entries.
Thoughts on Social Security Income
I’d love to hear your stories. Are you preparing to retire soon? Have you considered your Social Security income?
Have product questions? We have your answers.
In other words If I make a “combined income” of $35,000, ($17,000 IRA distributions) + ($10,000 1/2 ofSS) + ($8,000 W2s) the amount over $32,000 or $3000, then %50 of this amount will be taxed. So its actually the combined income product OVER $32,000, ($3000) or 50% of it will be taxed ?
Hello friend @ Turbotax
I received SS disability in the amount of
$15,259 and a small pension that payed me
$9,582 for a total of $24,841 of which my Social Security disability is %62.33
Do I need to pay taxes on the SSDI and if so, how do I figure it?
Thank you
i am single and receive a total of 42,000 a year but have 1 other dependent. do i get a break on my total income that would reduce my ss income tax?
On the SS form, line C says, ‘Enter your total income that is taxable.’ Would that be the amount from line 43 on the 1040 form?” It’s called ‘Taxable Income’ and is after deductions are subtracted. Sorry if this seems obvious, but I just don’t want to make a mistake.
Hi–thanx for taking the time to answer questions! My husband is 10 years older than me. He will be retiring much sooner, and I will continue to work. My question is, is my non-ss income from working considered as this “other” income when calculating the taxable amount of his benefit? Thanks!
hello
If my son who is 5 years old gets SS Benefits/income (deceased parent) do I add that income to my taxes/ taxable income or should I file a separate tax return for him
The first Social Security check that my wife received was FOR the month of Dec. 2012 but the check was received in Jan. 2013. Will this Social Security amount be reported on our 2012 return or on our 2013 return ?
I need help trying to get my tax. I get ssi and disablertte
My daughter receives SSI. She’s 22. Is she taxed on her monthly benefit?
She earned $808.00 last year working a little side job. I just wanted to confirm if she owes Federal and State tax on those earnings as well. I slipped up and didn’t file anything on those earnings for 2011. If she owes, what is the penalty we would owe?
Thank you so much!!
Hi Sherry,
Generally people don’t have to pay taxes when they just have social security income. If you have other income it may be taxed, but the amount your daughter earned was low. If your daughters combined income was between $25,000 and $34,000 then up to 50% of the social security income would be taxable. I don’t know the total she received but if the $808 she earned plus social security is below $25,000 she probably won’t need to file.
Thank you,
Lisa Greene-Lewis
Sorry, the right amount is NOT $29,500 BUT $20,500.
If husband and wife total income is from ss of 34,000 filing jointly, will we be taxed on that for 2012? Does age figure into the equation?
Thank you.
Marie
Hi Marie,
Typically if social security is your only income it would not be taxable. If you have other income in addition to social security and the combined income is 34,000 to 44,000 then up to 50% would be taxable.
Thank you,
Lisa Greene-Lewis
My wife and I have a combined income of 20,500 for 2012.
$7,103 of the $29.500 is my Social Security payments.
Will we be taxed on the $7,103 I received from Social Security?
My wife and i bring home 47K in SS benefits + 20K pension. Will i have to pay taxes on my SS and in what percentage? and for how long?
I am doing my taxes by hand. where can I find the % chart and taxable amount of my SS. I am on SSDI, is that still taxed
When determining what amount of SS income is taxed, is the social security income taxed if it is your only income? Is it added to our other income to determine how much tax is paid?
Hi Heidi,
Yes if you have other income it is all added together to determine how much will taxed. Depending on your filing status and total income 50 – 85% of your income may be taxed per the blog post.
Thank you,
Lisa Greene-Lewis