As you well know, the new tax season has arrived. That’s why the IRS reminds you that if you receive Social Security benefits, you may have to pay federal taxes.
Social Security benefits include retirement, survivor, and disability benefits. They do not include Supplemental Insurance payments, since these are not taxable.
The portion of the benefits that is taxable depends on your income and marital status.
To determine if your benefits are taxable, you must consider half of the Social Security money you received during the year and add it to your other income. Said income includes pensions, salaries, interest, dividends and capital gains.
If you are single and that total exceeds $25,000 dollars, then part of your Social Security benefits may be taxable.
If you are married filing jointly with your partner, you must consider half of your Social Security, plus half of your spouse’s Social Security, and add it to all of your income. If that total is more than $32,000 dollars, then part of your Social Security may be taxable.
50% of your benefits are taxable if:
–You file as single, head of household, or qualified widow/widower, with income between $25,000 and $34,000.
-Are you married and you file separately and you lived apart from your spouse for the entire 2020 having income between $000,000 and $34,000
–You are married filing jointly with income between $32,000 and $44,000.
85% from Your benefits are taxable if:
–You file as single, head of household, or qualified widow(er) with more than $34,000 in income.
–You are married and filing jointly with your partner with more than $44,000 in income.
–You are married filing separately and lived apart from your spouse for the entire 2021 having more than $34,000 in income.
–You are married and file separately and you lived with your spouse at any time during 2021.
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