2006-10-23 14:03:06 · 9 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Generally, if Social Security is your only income, your benefits are not taxable, and you probably do not need to file a federal income tax return.
But if you collect other income in addition to Social Security, you could owe taxes on at least a portion of your government benefits.
For a quick computation of your potential tax liability, add one-half of your Social Security benefits to all your other income.
In this calculation, you also must take into account any tax-exempt interest you earned, as well as exclusions from income such as savings bond interest, work-provided adoption benefits or foreign-earned income.
If this amount is greater than the base amount for your filing status, a part of your benefits will be taxable.
The base amounts for figuring possible tax liability on benefits are:
$25,000 for single, head of household, or qualifying widow or widower with a dependent child.
$25,000 for married individuals filing separately and who did not live with their spouses at any time during the year.
$32,000 for married couples filing jointly.
Zero for married persons filing separately who lived together.
Generally, up to half of your benefits will be taxed if you exceed the base amounts. However, up to 85 percent of your benefits could be taxed if your income plus half of your Social Security checks exceed $34,000 if you are a single filer or $44,000 if you are married and file jointly.
You'll need to complete the work sheet found in your Form 1040 or 1040A instruction book (or in your tax software package) to find out the exact amount.
2006-10-23 15:49:31 · answer #1 · answered by RamsGod 3 · 0⤊ 0⤋
Since 1985 a portion of your Social Security Benefits are subject to income tax if one half of those benefits and your other income exceeds $25,000 ($32,000 if filing MFJ). The maximum amount subject to income tax is 85% of the Social Security Benefits. If those benefits are taxed it will be as ordinary income at what ever tax rate you are in.
2006-10-23 21:43:37 · answer #2 · answered by ? 6 · 1⤊ 0⤋
Some of your social security benefits can be taxable at the federal level, depending on your other income. If your other income is high enough, up to 85% can be taxed - if your other income is fairly low, then it is NOT taxed.
State laws vary.
2006-10-23 22:39:26 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
You don't get taxed to get that benefit. You make a "contribution." Seriously. That's what the Feds call it, your "Social Security Contribution."
Of course, should you or your employer fail to make the contribution, nasty people in uniforms will show up and jail sentences will be handed out to non-contributers.
2006-10-23 21:12:04 · answer #4 · answered by geek49203 6 · 0⤊ 1⤋
It's taxed as ordinary income.
2006-10-23 21:05:10 · answer #5 · answered by Anonymous · 0⤊ 1⤋
mine is! maybe your state has a homested tax form? youll get some money back if your below poverty level.
2006-10-23 21:14:41 · answer #6 · answered by oldster 5 · 0⤊ 1⤋
In some cases, yes, it may be taxable.
2006-10-23 22:03:49 · answer #7 · answered by m_skokin 3 · 1⤊ 0⤋
Yes it is, because most people get more back than they paid in.
2006-10-23 21:10:52 · answer #8 · answered by Anonymous · 0⤊ 1⤋
supposedly not, but probably not.
2006-10-23 21:10:33 · answer #9 · answered by Jenny 2 · 0⤊ 1⤋