Taxes on SS

Bert
Bert Member Posts: 1 Newcomer
in Retirement Income

I understand that if I keep my non SS earnings under $44,000 that the federal tax on SS income is 50%. If I go over $44,000 it can go up to 85%. My question is, is the $44,000 after my personal deduction or just a flat $44,000. Example is if my personal deduction is $30,000 then will 74,000 earnings keep me in the lower federal tax?

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Best Answer

  • rachels
    rachels FreeTaxUSA Agent Posts: 70
    Answer ✓

    Hi Bert,

    The taxability of Social Security income does not take into account your personal deduction (ie. itemized or standard deduction). In your example, more than 50% of your benefits will be taxable if you had $74,000 of income during the year. If you are filing a Married Filing Jointly, you would need to keep your total income (including 1/2 of your Social Security benefits) under $44,000 to to keep your taxable benefits at 50%.

    For more information, please see the link below. Please pay particular attention to the explanation of combined income, which shows:

    Your adjusted gross income + Nontaxable interest + ½ of your Social Security benefits = Your "combined income"

    https://www-origin.ssa.gov/benefits/retirement/planner/taxes.html

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