THE GOVERNMENT GIVETH … AND IT TAKETH AWAY – Your Social Security Benefits Are Likely Taxable!
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Despite what most think, Social Security benefits are likely not tax-free. Remember – while you and your employer a wage tax (FICA) of 15% on all wages, once paid, Social Security benefits are likely taxable depending upon your income. For these purposes, “income” is defined as adjusted gross income, plus nontaxable interest income, plus half of your social security benefits. To find the figure for your adjusted gross income, see line 11 on your IRS Form 1040. If your total income is more than $25,000 for an individual, or more than $32,000 for a jointly filing married couple, your benefits are subject to federal income tax. If your total income falls below this line, your benefits are not subject to taxation. Beyond this, the specific amount of your Social Security benefits subject to taxation also depends on your income level. If your income is between $25,000-34,000 for an individual (or $32,000-44,000 for a married couple), up to 50% of your benefits are subject to taxation. If your income falls above this threshold, up to 85% of your benefits are taxable. See the tables below for a truncated version of the information presented in this article:
| Income Level (Individual) | Amount of Social Security Benefits Subject to Taxation |
| Below $25,000 | Not subject to taxation |
| Between $25,000-$34,000 | Up to 50% |
| Above $34,000 | Up to 85% |
| Income Level (Married Couple Filing Jointly) | Amount of Social Security Benefits Subject to Taxation |
| Below $32,000 | Not subject to taxation |
| Between $32,000-$44,000 | Up to 50% |
| Above $44,000 | Up to 85% |
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