Do I have to pay taxes on Social Security income?Published: August 10, 2020
Yes, your Social Security income may be taxable, but it depends on the amount of your combined income* each year. At the most, only 85% of your Social Security income may be taxed by the IRS.
This is how you calculate your combined income*:
Your adjusted gross income (AGI) + Nontaxable interest + ½ of your Social Security benefits = Your combined income*
If you file a federal tax return as an individual and your combined income* is…
o Below $25,000, you will not owe any federal income tax on your benefits.
o Between $25,000 and $34,000, up to 50 percent of your benefits may be taxable.
o More than $34,000, up to 85 percent of your benefits may be taxable.
If you file a joint return and you and your spouse have a combined income* that is…
o Below $32,000, you will not owe any federal income tax on your benefits.
o Between $32,000 and $44,000, up to 50 percent of your benefits may be taxable.
o More than $44,000, up to 85 percent of your benefits may be taxable.
If you are married and file separate tax returns, you will probably pay taxes on your benefits.
You can use your Social Security Benefit Statement (Form SSA-1099), showing the amount of benefits you received in the previous year, when you complete your federal income tax return to find out if your benefits are subject to tax.
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