Income and Investments Are Social Security Benefits Taxable? Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by Elle Martinez Published Aug 14, 2017 - [Updated Nov 17, 2020] 1 min read When you’re planning your retirement, you have look at all of your income streams during retirement and the living expenses you’ll be expecting. You should also be checking on the taxes you’re expected to pay, specifically taxes on your Social Security income. 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. “Combined income” in relation to social security income is Adjusted Gross Income plus nontaxable interest plus 1/2 of social security benefits. 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. 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 keep it in a safe place! But don’t worry about figuring how much of your social security income is taxable. TurboTax asks you simple questions and makes the behind the scenes calculations to figure out if your social security income is taxable based on your income entries. Previous Post 7 Ways to Save When Your Family Goes to the… Next Post What is a Qualified Joint Venture? Written by Elle Martinez Elle helps families at Couple Money achieve financial freedom by sharing tips for reducing debt, increase income, and building net worth. Learn how to live on one income and have fun with the second. More from Elle Martinez Visit the website of Elle Martinez. Follow Elle Martinez on Facebook. Follow Elle Martinez on Twitter. 72 responses to “Are Social Security Benefits Taxable?” « Older Comments Newer Comments » I have elected to have 10% of my SSD benefits to be taxed monthly. My husband and I have a combined income above the cut off. I want to know why my benefits are still being taxed at 75-85% every years even though I’ve paid taxes out every month? We have usually gone to H&R Block. One year it was only around 50% and we still were above the cut off, but since, more and more of my benefits are taxed even though I’m paying monthly. Should I elect to stop having them taxed monthly if I’m still gonna be taxed the same amount every year? Reply Which TurboTax download is best for the following: Married filing jointly AGI 105K Taxable soc security benefits some charitable contributions heavy medical expenses own home/interest and property taxes casualty from theft for 2013 some work expenses Reply is true that depending on your other income and your filing status,your social security benefits may be taxed at an 85 percent tax rate . Reply GHASTLY, NOT at an 85% rate, 85% is subject to tax at whatever bracket you fall in Reply My wife is disabled and receiving social security disability income of about 1100.00 per month. I am 65 and receiving social security income of around 1780.00 per month and I have a small business. Our Adjusted gross income on line 38 for 2012 was 21,769. I assume I will not only be taxed on my earning but be hit with a reduction in benefits since I/We earned over the maximum of 15,120.00. Is her disability income which increased line 38 counted toward the earnings limit? If so should I file as married but filing separately ? Reply My new husband is in Australia and he is on a pension. I will be making around $12,000.00 a year SSI and about $6,000.00 pers pension for a combo of $18,000.00. I want to file married filing separate. Will I have to pay taxes on my SSI and pension? Reply My partner and I are getting married in NH in Nov. We will file a married joint return for the 1st time for 2013. His income is about $45,000 I receive SSDI in the amount of $16,000 with a combined income now of $61,000 will we have to pay taxes on my ss >>>> Reply I receive ssd inthe amount of 2115 per month It totals 25380. It is my only income. Will I have to pay taxes on 380 dollars? Reply Not understanding the 32,000 subtraction for Social Security, joint return making over 44,000 23,895 in SS and 52,000 in pensions. Do we pay 85% of the whole total SS or do we pay on half of the SS? Thank you! Reply If i make 34 thousand a year from employment will my daughter still qualify for SSI benefits. Reply It seems that if one spouse is working, that you almost certain to be taxed on social security benefits received. Would this be true if the recipient was receiving SSDI for being 100% disabled and unable to work as apposed to normal social security benefits? Also, is there an incentive to have a husband and wife file separately? Besides tax exempt income, is there any other quirks in the formula to determine how much the pension is taxable? . Reply Yes, Gerard, Disability income follows the same guidelines. Generally speaking, filing jointly is still the preferable choice as the Tax Table will show you in a heartbeat…married filing separately calls for a higher tax rate. There are certain instances where it is advantageous to file separately, but there are some different rules, too…for instance you can’t deduct student loan interest when filing separately, and if one of you itemizes, then you both must Reply « Older Comments Newer Comments » Leave a ReplyCancel reply Browse Related Articles Latest News How the Social Security Fairness Act Boosts Benefits for Public Workers Latest News President Trump’s Tax Proposals: Overtime Tax, Taxes on Tips, and Tax Cuts and Jobs Act Extension and More Income Tax by State Mississippi State Income Tax in 2025: A Guide Income Tax by State Colorado State Income Tax in 2025: A Guide Income Tax by State North Carolina State Income Tax in 2025: A Guide Income Tax by State California State Income Tax in 2025: A Guide Income Tax by State Kansas State Income Tax in 2025: A Guide Income Tax by State Illinois State Income Tax in 2025: A Guide Income Tax by State Michigan State Income Tax in 2025: A Guide Income Tax by State New Jersey State Income Tax in 2025: A Guide
I have elected to have 10% of my SSD benefits to be taxed monthly. My husband and I have a combined income above the cut off. I want to know why my benefits are still being taxed at 75-85% every years even though I’ve paid taxes out every month? We have usually gone to H&R Block. One year it was only around 50% and we still were above the cut off, but since, more and more of my benefits are taxed even though I’m paying monthly. Should I elect to stop having them taxed monthly if I’m still gonna be taxed the same amount every year? Reply
Which TurboTax download is best for the following: Married filing jointly AGI 105K Taxable soc security benefits some charitable contributions heavy medical expenses own home/interest and property taxes casualty from theft for 2013 some work expenses Reply
is true that depending on your other income and your filing status,your social security benefits may be taxed at an 85 percent tax rate . Reply
My wife is disabled and receiving social security disability income of about 1100.00 per month. I am 65 and receiving social security income of around 1780.00 per month and I have a small business. Our Adjusted gross income on line 38 for 2012 was 21,769. I assume I will not only be taxed on my earning but be hit with a reduction in benefits since I/We earned over the maximum of 15,120.00. Is her disability income which increased line 38 counted toward the earnings limit? If so should I file as married but filing separately ? Reply
My new husband is in Australia and he is on a pension. I will be making around $12,000.00 a year SSI and about $6,000.00 pers pension for a combo of $18,000.00. I want to file married filing separate. Will I have to pay taxes on my SSI and pension? Reply
My partner and I are getting married in NH in Nov. We will file a married joint return for the 1st time for 2013. His income is about $45,000 I receive SSDI in the amount of $16,000 with a combined income now of $61,000 will we have to pay taxes on my ss >>>> Reply
I receive ssd inthe amount of 2115 per month It totals 25380. It is my only income. Will I have to pay taxes on 380 dollars? Reply
Not understanding the 32,000 subtraction for Social Security, joint return making over 44,000 23,895 in SS and 52,000 in pensions. Do we pay 85% of the whole total SS or do we pay on half of the SS? Thank you! Reply
It seems that if one spouse is working, that you almost certain to be taxed on social security benefits received. Would this be true if the recipient was receiving SSDI for being 100% disabled and unable to work as apposed to normal social security benefits? Also, is there an incentive to have a husband and wife file separately? Besides tax exempt income, is there any other quirks in the formula to determine how much the pension is taxable? . Reply
Yes, Gerard, Disability income follows the same guidelines. Generally speaking, filing jointly is still the preferable choice as the Tax Table will show you in a heartbeat…married filing separately calls for a higher tax rate. There are certain instances where it is advantageous to file separately, but there are some different rules, too…for instance you can’t deduct student loan interest when filing separately, and if one of you itemizes, then you both must Reply