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