Are your Social Security benefits taxable?

Are your Social Security benefits taxable?

Will you have to pay income tax on the Social Security benefits you receive? It depends on many variables. The IRS uses a measurement called “combined income” to determine if you need to pay taxes on any part of your Social Security benefits. Combined income is made up of two parts: 50% of your Social Security benefits and; ALL of your other income. Your “combined income” equals ½ of your Social Security benefits + your adjusted gross income + nontaxable interest or other nontaxable income (if any). For many taxpayers, there is no difference because they do not have income that need to be excluded from their “Adjusted Gross Income” (AGI) total. If you are married, filing jointly and your total combined income is between $32,000 and $44,000, you may have to pay an income tax on up to 50 percent of your benefits. If your combined income is more than $44,000, up to 85 percent of your benefits may be taxable. If...
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