Ask Kim
Taxing Your Social Security Benefits
By Kimberly Lankford, Contributing Editor, Kiplinger's Personal Finance
October 14, 2002
It depends on your other sources of income, and how much you get.
Add up your taxable income from pensions, wages, interest, dividends and other sources, plus tax-exempt interest income (such as interest on municipal bonds) plus one-half of your social security benefits (you'll receive form 1099-SSA reporting your social security benefits for the year).
If you're married filing jointly and the total from all of those sources is:
- Less than $32,000, then your social security benefits won't be taxed.
- Between $32,000 and $44,000, then up to 50% of your social security benefits will be taxed at your regular income-tax rate.
- More than $44,000, then up to 85% of your benefits can be taxed.
If you're single and the total from all of those sources is:
- Less than $25,000, then your social security benefits won't be taxed.
- Between $25,000 to $34,000, then up to 50% of your social security benefits will be taxed at your regular income-tax rate.
- More than $34,000, then up to 85% of your benefits can be taxed.
The calculations can get tricky -- see the instructions for Form 1040 (PDF, 426.7 KB), pages 25-26, for a worksheet that can help you run the numbers. For additional information, see IRS Publication 554 Older Americans' Tax Guide (PDF, 192.7 KB)and the Social Security Administration's retirement benefits booklet.