I'm Doug, and I'm sorry to hear of the confusion. My goal is to provide you with excellent service today.
Almost certainly, at least part of your social security benefits will be taxed, and how much will be taxed is dependent on your marital/filing status. Let me explain.
You can do the following quick computation to determine whether some of your benefits may be taxable:
A. 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.
B. 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.
If you are married filing jointly, your base amount is $32,000.
If you are single, your base amount is $25,000.
If you file a federal tax return as an "individual" and 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 it is more than $34,000, up to 85percent of your benefits may be taxable.
If you file a joint return, and you and your spouse have a combined income* that is between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits. If it is more than $44,000, up to 85 percent of your benefits may be taxable.
Your adjusted gross income + Nontaxable interest + ½ of your Social Security benefits = Your "combined income".
If your private sector pension is expected to be ongoing (which is typical), you might consider asking that some taxes be deducted from your social security benefits so you aren't caught short each year at tax season.
In order to set up withholding from your social security benefit payment, you can simply fill out a form and send it in to social security. You will need to determine whether you want them to withhold either7%, 10%, 15% or 25% from your benefit payment.
You can find the form---Voluntary Withholding Request---- here:
Or you may call 1-***-***-**** and request the form. Or, you may go to your local Social Security office and do it there as well.
You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.
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I wish you and yours the best in 2016,