Do I have to pay tax on my Social Security benefits?

Your Social Security benefits are tax exempt on your tax return if your base amount is below the following amounts:

	$32,000 if your tax return filing status is married filing jointly;
	$25,000 if your tax return filing status is single, head of household, qualifying widow(er), or if you are married filing separately and did not live with your spouse at any time in 2006;
	$0 if your tax return filing status is married filing separately and did live with your spouse at any time in 2006.

You should receive form SSA-1099 if you received or repaid any Social Security benefits in 2006. Your net Social Security benefits are shown in Box 5. Use this amount to determine whether your Social Security benefits are taxable and must be reported on your tax return provided it's a positive amount. If your Social Security benefits are a negative amount then none of your Social Security benefits are taxable and they do not need to be reported on your tax return. Negative Social Security benefits are shown in parentheses. If the negative Social Security benefits relates to benefits paid and taxed in a prior tax year you may be entitled to a tax deduction - or to file an amended tax return on Form 1040X.

To find out whether any of your Social Security benefits are taxable on your tax return, compare the base amount for your tax return filing status with the total of:

	One-half your Social Security benefits, plus
	All your other income, including tax exempt interest. (Do not reduce your income by any tax exclusions for interest from Series EE US Savings Bonds, for foreign earned income or foreign housing, or for income earned in American Samoa or Puerto Rico by bona fide residents.)

If your income is more than your base amount, part of your Social Security benefits will be taxable and must be reported on your tax return. The taxable amount of your Social Security benefits is figured on a worksheet in the Form 1040 or Form 1040A instruction book.

Related tax information about Social Security benefits

Tax Directory Topics:
Income Related Questions and Answers

IRS publications about Social Security benefits:
For further tax information about social security and equivalent railroad retirement benefits, including how to take a tax deduction or file an amended tax return for negative benefits relating to a prior tax year see IRS Publication 915,

Social Security and Equivalent Railroad Retirement Benefits. Also see IRS Publication 17,

Your Federal Income Tax. Please read this IMPORTANT Editor's Note regarding navigating IRS publications with Adobe Acrobat Reader.
IRS publications can also be ordered by calling 1-800-829-3676.

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