Are Social Security Benefits Taxable?

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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.

72 responses to “Are Social Security Benefits Taxable?”

  1. 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?

  2. 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

  3. 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 .

  4. 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 ?

  5. 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?

  6. 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 >>>>

  7. 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!

  8. 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?

    .

    • 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

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