Do you have to pay federal income tax on Social Security benefits?

Ma9989009

Answered Last

Yes. you may have to pay income tax if your modified adjusted gross income is $25,000 or more for a single person, or $32,000 or more for a couple filing jointly. Social Security benefits are taxed at 0%, 50% or 85% (see below), depending on your total taxable income.

If you are retired or disabled and Social Security benefits are your only source of income, you will need to file, but generally will not be taxed. If you received income from sources other than Social Security, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status.

  • For a single taxpayer, If your total AGI is less than $25,000, you pay tax on 0% of your benefits.
  • If your total AGI is $25-34,000, you pay tax on 50% of your benefits
  • If your total AGI

    is above $34,000, you pay tax on 85% of your benefits

  • For a married couple filing jointly. If the total AGI is less than $32,000, you pay tax on 0% of your benefits.
  • If your total AGI is $32-$44,000, you pay tax on 50% of your benefits
  • If your total AGI is above $44,000, you pay tax on 85% of your benefits

You can do the following quick computation to determine whether some of your benefits may be taxable:

  • First, add one-half of the total Social Security benefits you received to all your other income, including any tax exempt interest and other exclusions from income.
  • Next, compare this total to the base amount for your filing status, if the total is more than your base amount, then 50% or 85% of your benefits may be taxable.

    Source: www.answers.com

    Category: Taxes

    Similar articles: