Taxes On Social Security Benefits

Depending On Your Income, Your Social Security Benefits May Be Taxed

If you have sources of income in addition to social security, then you may have to pay taxes on your social security benefits. Those additional sources of income would include items such as wages, self employment income, interest and dividends, or pension income.

To determine if you will pay taxes on your social security benefits you must come up with an estimate of what you think your combined income will be.

Social security considers your “combined income” the total of your adjusted gross income plus non-taxable interest, plus one half of your social security benefits.

Once you have an idea of what your combined income will be, use the guidelines below to determine if you will pay taxes on your social security benefits.

Taxes On Social Security Benefits For Married Filers

• If you are married and your combined income exceeds $44,000, then 85% of your social security benefits will be taxable.
• If you are married and your combined income falls between $32,000 and $44,000 then 50% of your social security benefits may be taxable.

Taxes On Social Security Benefits For Individual Filers

• If you file as an individual and your combined income exceeds $34,000, then 85% of your social security benefits will be taxable.
• If you file as an individual and your combined income falls between $25,000 and $34,000 then 50% of your social security benefits may be taxable.

For additional information visit Taxes and Your Social Security Benefits on the social security website, or download Publication 554, Tax Information For Older Americans.