Are Social Security Benefits Taxable?

August 7, 2013

Most people receiving funds from the SSA will not be subject to taxes because they do not earn enough income per year to pay taxes, however, those receiving Social Security Disability Income (SSDI) benefits may have to pay taxes.  It is advisable to discuss your earnings will an accountant who is familiar with disability taxes.  The basics are as follows:

If you are single with an income (including wages, pensions, tax-exempt interest and one-half of your Social Security benefits) that is more than $25,000 but less that $34,000, you will pay taxes on 50% of your benefits.  If you are married and file jointly and you have a combined income of over $32,000 and less than $44,000, you will pay taxes on 50% of your benefits.

If you are single and make more than $34,000 per year or you are married and filing jointly and have a combined income of more than $44,000, you will pay taxes on 85% of your Social Security benefits.

If you are married and file separately, you will also pay taxes on 85% of your Social Security benefits.

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