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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29933
Experience:  Taxes, Immigration, Labor Relations
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I am on social security now. I understand that I pay 15%

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I am on social security now. I understand that I pay 15% (?) on the social security when the federal tax is due. However, do I deduct the medicare amount that the government takes out of social security? Do I pay the tax on the full amount of the social security instead? I receive 1536.00 but 96.40 is taken out for medicare. How do I figure the tax?

HiCustomer Thank you for asking your question on Just Answer.

Your total SS benefits that are used for tax calculations are reported on the form SSA-1099 box 5 - that amount should not include Medicare payments.

Medicare premiums deducted from your benefit. If you have Medicare premiums deducted from your benefits, this is the amount withheld during 2007. The basic monthly premium in 2007 was $93.50, but it could be higher if you enrolled after you were first eligible, you had a break in coverage, or the modified adjusted gross income
shown on your 2005 federal income tax return is greater than $80,000.
Medicare Part C, Medicare Advantage Premium, and Medicare Part D, Prescription Drug Premium, are other Medicare deductions you may have. These premiums may

Please refer to the IRS publication 915 -

first of all your SS income may be not taxable at all. That would depend if your other taxable income plus half of SS income is less than $25,000 for single; $32,000 for married couples - none of your SS benefits are taxable.

Only if the amount is above specified limit - part of your SS income is taxable. To determine which part is taxable - use the worksheet and see examples on the pages 7-10.

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