Social Security benefits may be taxable

If you are collecting Social Security benefits during retirement or you receive survivor or disability benefits through Social Security, you could be liable for income taxes on a portion of those benefits, the Internal Revenue Service reports. Supplemental Security Income payments, however, are not taxable. Continue on to find out more.

See: 5 Places in Florida Where You Can Live Only on Social Security
More:
5 Things You Must Do When Your Savings Reach $50,000

You could have to pay taxes on 50% of your Social Security benefits if the total income for an individual, including pensions, wages, dividends and capital gains plus Social Security benefits total between $25,000 and $34,000. For married couples filing jointly, if the total of all pensions, wages, dividends and capital gains plus half of each spouse’s Social Security equals between $32,000 and $44,000, they will have to pay taxes on 50% of their Social Security income.

Take Our Poll: Do You Believe in Quiet Quitting?

Married couples who file separately and also live apart follow the same guidelines as individual taxpayers. Those same guidelines for individuals also apply to anyone filing as head of household or as a qualifying widow or widower.

Individual taxpayers, married couples filing separately and living apart, heads of household and qualifying widows and widowers are taxed on 85% of their Social Security if their total income exceeds $34,000. Married couples filing jointly are taxed on 85% of their benefits if their income exceeds $44,000.

If you’re unsure about your taxable income based on your Social Security payments and other investments or income, it’s wise to consult with a tax preparer, tax accountant or IRS enrolled agent who can help advise you. Be sure your tax service of choice can help you e-file your taxes for ease, convenience and security.

More From GOBankingRates

  • 5 Fall Items To Stock Up on From Costco

  • 8 Purchases Retirees Almost Always Regret

  • 6 Things You Must Do When Planning For Retirement

  • 101 Easy Ways To Save Money Daily

This article originally appeared on GOBankingRates.com: Social Security Benefits May Be Taxable

Source: Read Full Article

Previous post Paul Weller’s daughter Leah shares sweet story behind collaboration on new album
Next post Adrienne Bailon-Houghton's French Manicure Completes Her '90s Beauty Aesthetic