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Bill
Bill, Enrolled Agent
Category: Tax
Satisfied Customers: 3152
Experience:  EA, CEBS - 35 years experience providing financial advice
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I got married in 2008, June. My wife got SS disability in

Customer Question

I got married in 2008, June. My wife got SS disability in July, she had less than $2500 in earned income up to that point. She received back pay and now receives SS monthly. My income for the year is $30370 do we have to pay tax on the back pay she received?
Submitted: 8 years ago.
Category: Tax
Expert:  Bill replied 8 years ago.

A portion of the benefits will be taxable because when the sum of the benefits received plus all other taxable income exceeds the base amount of $32,000 (for married filing jointly) then some of the benefits become taxable. The portion that becomes taxable depends on the total amount of income. The most that can be taxable is 85% of the benefits.

 

If the lump sum was received for benefits attributed to an earlier year, then the taxes on that amount can be calculated separately based on the earlier year's income if it would lower the total taxes due on the 2008 return. These rules are explained in Publication 915.

 

See pages 2 - 4 and pages 11 - 14 - http://www.irs.gov/pub/irs-pdf/p915.pdf

 

Bill and 2 other Tax Specialists are ready to help you
Expert:  Bill replied 8 years ago.
To correct one of my statements, when the sum of 50% of the benefits plus all other income exceeds the base amount of $32,000 then a portion of the benefits become taxable.