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CFEPro789
CFEPro789, Accountant
Category: Social Security
Satisfied Customers: 543
Experience:  Former IRS Agent, Master of Accountancy, Tax Return Preparer
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When are SS benefits not taxable?

Customer Question

When are SS benefits not taxable?
Submitted: 1 year ago.
Category: Social Security
Expert:  CFEPro789 replied 1 year ago.
Hello my name is ***** ***** I will be helping you today. Social Security benefits are taxable only if you have other substantial income, for example wages, business income, etc in addition to your benefits. If you file a tax return as single, and your total income is between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits, if your taxable income is over $34K then you can pay income tax on up to 85% of your benefits. The SSI is not taxable if you have total taxable income under $25,000. So if you only have income from social security, and no other income, then the benefits are not taxable.
Expert:  CFEPro789 replied 1 year ago.
If you can provide me your exact social security income, your filing status, and any other sources of income I can give you an idea as what portion is taxable.
Expert:  CFEPro789 replied 1 year ago.
One quick correction above, where I said your "total income" and "taxable income" it should read "combined income", sorry about that. So essentially to determine if your social security benefits are taxable; divide your social security benefits in half, and add that to your other income. That is your combined income.
Expert:  CFEPro789 replied 1 year ago.
Then if your combined income is between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits, if your taxable income is over $34K then you can pay income tax on up to 85% of your benefits. For example, if your social security benefits are $24,000, and you made $10,000 in wages from a job, your combined income is ($24,000/2) + $10,000 = $22,000; in this case your social security benefits are not taxable because your combined income is less than $25,000
Expert:  CFEPro789 replied 1 year ago.
I think that should answer your question, but if you want to give me your specific details I can let you know for your specific situation. Thanks for using Just Answer! Please let me know if this resolves your question.
Expert:  CFEPro789 replied 1 year ago.
Here is a good video on the subject: https://www.youtube.com/watch?v=qIzmSqHrHlM As well as information from the IRShttps://www.irs.gov/uac/Social-Security-Benefits-and-Your-Taxes1

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