March 22, 2011

Are Your Social Security Benefits Taxable?

Found In:

• Tax Central

• Social Security

On December 22, 2017, The Tax Cuts and Jobs Act was signed into law. The information in this article predates the tax reform legislation and may not apply to tax returns starting in the 2018 tax year. You may wish to speak to your tax advisor about the latest tax law. This publication is provided for your convenience and does not constitute legal advice. This publication is protected by copyright.

How much, if any, of your Social Security benefits are taxable depends on your total income and marital status.  Generally, if your only income for the year is Social Security benefits, it is not taxable.  If you received income from other sources or have income from tax-free municipal sources, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status.  

The base amounts are: $32,000 for married couples filing jointly, $25,000 for single, head of household, qualifying widow/widower with a dependent child, or married individuals filing separately who did not live with their spouses at any time during the year.

You can do the following quick computation to determine whether some of your benefits may be taxable.  First, add one-half of the total Social Security benefits received to all your other income, including any tax-exempt interest and other exclusions from income.  Then compare this total to the base amount for your filing status. If the total is more than your base amount, some of your benefits may be taxable.