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Do I have to pay tax on my Social Security benefits?
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| Social
Security benefits are taxable if base income exceeds the
following dollar amounts, based on filing status: |
| Filing Status |
Base Income |
Single, Head of Household, Qualifying Widow(er)
and Married Filing Separately (lived apart all year) |
$25,000 |
| Married Filing Jointly |
$32,000 |
|
Married Filing Separately (living together) |
$0 |
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The base
income includes the following:
1 - All taxable income.
2 - Tax exempt interest and dividends.
3 - 50 percent of Social Security benefits received.
4 - Other factors to add: US savings bond interest excluded, adoption benefits excluded, foreign
income/housing excluded.
5 - Less all subtractions from income to arrive at AGI (lines 23 thru
35) except student loan interest (line 33), tuition and
fees deduction (line 34), and domestic production activities
deductions (line 35). Also subtract any write-in adjustments from line
36.
If the
base
income exceeds the above dollar amounts, part of the Social Security
benefits will be taxable.
|
| Filing Status |
Base Income |
Taxable Social Security Benefits |
Single, Head of Household, Qualifying Widow(er)
and Married Filing Separately (lived apart all year) |
less than $25,000
|
none
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| $25,000 to $34,000 |
not more than 50% of total benefits
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| over $34,000 |
not more than 85% of total benefits
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| Married
Filing Jointly |
less than $32,000
|
none
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| $32,000 to $44,000 |
not more than 50% of total benefits |
| over $44,000 |
not more than 85% of total benefits |
| Married
Filing Separately (living together) |
more than $0 |
not more than 85% of total benefits |
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You should receive form SSA-1099 if you received or repaid any Social Security benefits. 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.
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| Related tax
information about Social Security benefits |
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| Income Related Questions and Answers |
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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. |
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Ask Julian Block your IRS and tax questions! |
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If you can't find the answer to your IRS or tax question in our
web you can call former IRS Special Agent and one of the country's foremost tax attorneys, nationally syndicated columnist ("The Tax
Adviser") Julian Block. Julian is also the tax Editor of Mutual Funds Magazine, America's premier investment magazine. To
call Julian for a tax consultation click
here. |
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