are there income taxes on social security benefits?

Answer 1

There can be! It depends on the amount of other income that you have. If that other income is less than $25,000 for a single person or less than $32,000 for a married couple the SS benefits are not subject to income tax. If your income level is greater than those amount, up to 85% of your Ss benefits are subject to income tax.

Answer 2

the safe answer for long range financial planning purposes is "yes". For this year, 15% of total benefits (you have to add back your Medicare part B premium which is deducted monthly before you receive your check) are tax-free to everyone. A larger proportion are tax-free if your taxable income is otherwise low -- see instructions for form 1040.

As we all know, Social Security is, long range, bankrupt. Some future Congress will "solve" this. Like any retirement plan, the only solutions possible are to put more money in (raise taxes), make more as you go along (invest better -- perhaps in the stock market), or take less out (reduce benefits or delay when you can get them).

My personal bet is that Congress will end up BOTH increasing taxes and reducing or delaying benefits. A favorite for increasing taxes will be to simply tax all Social Security benefits when received. The truly poor will continue to pay nothing. But middle class and upper working class retirees will pay higher income taxes (the government "deposits" the income taxes received on SS benefits into the SS trust fund).

does this help?

Answer 3

If that's your only income, no. If you have other income, up to 85% of your social security benefits can be subject to federal income tax, depending on your total income.

Answer 4

Some people have to pay federal income taxes on their Social Security benefits. This usually happens only if you have other substantial income (such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return) in addition to your benefits. No one pays federal income tax on more than 85 percent of his or her Social Security benefits based on Internal Revenue Service (IRS) rules. If you:

file a federal tax return as an "individual" and your combined income is
between $25,000 and $34,000, you may have to pay income tax on 50 percent of your benefits.
more than $34,000, up to 85 percent of your benefits may be taxable.

file a joint return, and you and your spouse have a combined income that is
between $32,000 and $44,000, you may have to pay income tax on 50 percent of your benefits
more than $44,000, up to 85 percent of your benefits may be taxable.

are married and file a separate tax return, you probably will pay taxes on your benefits.

Note:
Your adjusted gross income
+ Nontaxable interest
+ ½ of your Social Security benefits
= Your "combined income"


Each January you will receive a Social Security Benefit Statement (Form SSA-1099) showing the amount of benefits you received in the previous year. You can use this Statement when you complete your federal income tax return to find out if your benefits are subject to tax.

For more information about taxation of benefits, see IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits.

If you do have to pay taxes on your Social Security benefits, you can make quarterly estimated tax payments to the IRS or choose to have federal taxes withheld from your benefits.


http://www.ssa.gov/

Answer 5

There is tax on part or all of it if you earn over a certain limit. Check the tax instructions for details.
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Answer 6

assume you reside married, your husband collects $1K a month in reward, and you document a joint return. The worst case is that eighty 5% if his $12,000 earnings is taxed. in case you jointly are in the 15% bracket, this quantities to tax of $a million,530 in step with 365 days. while you're no longer any extra married, your earnings heavily isn't seen in figuring the tax on his reward. in case you divorce in ordinary terms to evade taxes, the IRS considers it tax fraud. in case you elect to hold jointly the money yet evade tax and shield your earnings, you may boost your retirement contributions to cut back your taxable earnings. additionally, your husband might desire to proceed to make slightly money (approximately $13,000) till his complete retirement age and not have a extra alleviation in his reward.

Answer 7

Yes but it depends on your income.

Answer 8

OH yes