Are my Social Security payments subject to income tax?

Asked by Edna

6 Answers

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Answered by Helen Barbre Stephens, Financial Adviser in Fort Worth, TX
Hi Edna,
As when dealing with anything tax related, the answer is "that depends". A portion of SS benefits is taxed if income above a "base amount" (which is determined by your filing status) is received in addition to your SS benefits. If you are single, if your combined income is over $25,000 (base amount) and under $34,001, up to 50% of your benefits are taxable. If your combined income is above $34,000, up to 85% of your benefits are taxable. The maximum amount of tax assessed for social security is 85% of the benefit. | 01.16.14 @ 17:42
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$commenter.renderDisplayableName() — {comment} | 12.06.16 @ 03:15
Just do add to Helens answer here is a good breakdown for you. hope this helps

Some people have to pay federal income taxes on their Social Security benefits. This usually happens only if you have other substantial income (such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return) in addition to your benefits.

No one pays federal income tax on more than 85 percent of his or her Social Security benefits based on Internal Revenue Service (IRS) rules. If you:

file a federal tax return as an "individual" and your combined income* is
between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits.
more than $34,000, up to 85 percent of your benefits may be taxable.

file a joint return, and you and your spouse have a combined income* that is
between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits
more than $44,000, up to 85 percent of your benefits may be taxable. | 01.16.14 @ 20:39
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$commenter.renderDisplayableName() — {comment} | 12.06.16 @ 03:15
Answered by Steve Stanganelli , CFP®, CRPC® in Amesbury, MA
'Maybe' is never a satisfying answer but that is the best one available given the limited information provided.

While I cannot really add to the excellent responses provided already, I will encourage you to seek professional advice from a qualified financial planner and/or tax preparer.

For reference, feel free to check out the information from the IRS - yes, it is the government but they really can help. | 01.27.14 @ 04:43
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$commenter.renderDisplayableName() — {comment} | 12.06.16 @ 03:15
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Answered by William Faraci
My SS and a small retirement supplement income will total about $29,280 per year when I retire next year. Is only the amount above the $25,000 limit only subject to the 50% of taxable income or is it the whole $29,280? | 03.09.15 @ 17:32
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$commenter.renderDisplayableName() — {comment} | 12.06.16 @ 03:15
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Answered by george
my mother is 84 years old ,what is the max income where she can not have to file any more? | 04.15.15 @ 01:44
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$commenter.renderDisplayableName() — {comment} | 12.06.16 @ 03:15
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Answered by Michael
Hello I am on Social Security Disabilty because of medical issues,I am only 55. I had insurance at my job when I got sick plus I have a rental home.My total annual income is about $40,000 which they were only taking taxes out of the insurance.check I receive each month. So I only paid maybe $1500 taken out thru the year.The IRS killed me I had to pay about $5500 state and federal taxes April 15th.This only happened because I got separated late summer 2014. I worked for about 38 yrs.and never had to pay at the end of the year.My wife would not file with me so I had to file married filing separated.My brother is a accountant he did my taxes what can I do during the year so I don't have to pay that amount again this year.Most of the income goes back into the house for repairs plus I still have a mortgage on it of the amount of $22,000.alone I get about $22,000 from SSD with no taxes taken out.I know I have to start paying quarterly so I do not have to pay it all at one time. Can I still put money in my IRA even though I am getting SSD and my health insurance when I was working they took my medical insurance out of my check and it was not added to my earned income.Can someone give me some help so I can get my earned income down a lot.Thank you hope who ever reads this understands my issue. | 06.24.15 @ 22:19
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$commenter.renderDisplayableName() — {comment} | 12.06.16 @ 03:15
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