Up to 50% or 85% of your Social Security benefits are counted as taxable income if the provisional or total income, as defined by tax law, is above a certain base amount.
When Can Social Security Benefits Count As Taxable Income?
According to IRS, all income is considered taxable unless it’s exempted by law. Social Security benefits are taxable for people that fall within certain income levels. These benefits contain monthly retirement, survivor, and disability benefits
However, your Social Security income may not be taxable at all if your total income is below the base amount. If you’re married and filing jointly with your spouse, your combined income and social security benefits are used to figure your total income.
Social Security benefits will be federally taxable depending on your income:
Up to 85% of Social Security benefits are taxable if:
- For an individual with more than $34,000 half of Social Security benefits plus receives other income.
- A married couple who file jointly, half of their Social Security benefits and receiving other income with more than $44,000.
Up to 50% of your Social Security benefits are taxable if:
- Half of your Social Security benefits plus receive other payments ranging from $25,000 and the maximum is $34,000 for individuals.
- Half of your Social Security benefits plus receive other payments between $32,000 to $44,000 for a married couple filing jointly.
None of your Social Security benefits are taxable if:
- Individuals or couples filing jointly with an income fall below the above levels.
Are All Kinds of Social Security Income Taxable?
All social security benefits are taxable for the same as retirement, survivors, or disability benefits. Social Security benefits are paid to a child under his or her Social Security number (SSN) and could be taxable. Furthermore, Supplemental Security Income, or SSI, is a non-taxable needs-based federal benefit. It is not included in Social Security benefits and does not calculate into the taxable benefit formula.
The IRS has an online tool that helps you determine whether your benefits are taxable or not. Either file quarterly with an estimated tax return to IRS, ask Social Security to withhold federal taxes from your benefit payment, or pay the full amount at tax time.
Social Security Benefits Is Subjected To Tax By The IRS