SDM Accounting Insights: You May Have To Pay Tax on Social Security Benefits

Episode 13 July 05, 2019 00:04:12
SDM Accounting Insights: You May Have To Pay Tax on Social Security Benefits
SD Mayer
SDM Accounting Insights: You May Have To Pay Tax on Social Security Benefits

Jul 05 2019 | 00:04:12

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Show Notes

If you’re getting close to retirement age, you may be wondering if your Social Security benefits are going to be taxed. The answer depends on your other income. If you’re taxed, up to 85% of your payments will be hit with federal income tax. (There could also be state tax.) If you file a joint tax return and your “provisional income,” plus half your Social Security benefits, isn’t above $32,000 ($25,000 if unmarried), none of your benefits are taxed. If your provisional income is above those amounts, you must report a certain percentage of your benefits as income. Contact us for help with the exact calculations. We can also help you plan to keep taxes as low as possible during retirement.

https://www.sdmayer.com/insights/blogs/individual-tax/you-may-have-to-pay-tax-on-social-security-benefits/

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