If you received Social Security benefits , you need to know whether or not these benefits are taxable. Here are seven facts the Internal Revenue Service wants you to know about Social Security benefits so you can determine whether or not they are taxable to you.
Information about Taxes and Social Security
1. How much – if any – of your Social Security benefits are taxable depends on your total income and marital status.
2. Generally, if Social Security benefits were your only income, your benefits are not taxable and you probably do not need to file a federal income tax return.
3. If you received income from other sources, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status.
4. Your taxable benefits and modified adjusted gross income are figured on a worksheet in the Form 1040A or Form 1040 Instruction booklet.
5. 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 you 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.
6. A quick way to find out if any of your benefits may be taxable is to add one-half of your Social Security benefits to all your other income, including any tax-exempt interest. Next, compare this total to the base amounts below. If your total is more than the base amount for your filing status, then some of your benefits may be taxable. The three base amounts are:
- $25,000 – for single, head of household, qualifying widow or widower with a dependent child or married individuals filing separately who did not live with their spouse at any time during the year
- $32,000 – for married couples filing jointly
- $0 – for married persons filing separately who lived together at any time during the year
7. For additional information on the taxability of Social Security benefits, see IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits. Publication 915 is available below or by calling 800-TAX-FORM (800-829-3676).
Social Security Tax Withholding
Call Social Security at 800-772-1213 and ask for IRS Form W-4V. Or get the Voluntary Withholding Request form online. The form will give you four choices as to how much money you want withheld from your monthly payments: 7 percent, 10 percent, 15 percent or 25 percent. The withholding may make it easier for you to pay your taxes when April 15 rolls around each year.
Additional IRS Resources on Social Security:
- Publication 915, Social Security and Equivalent Railroad Retirement Benefits
- Tax Topic 423 – Social Security and Equivalent Railroad Retirement Benefits