Taxes on SS

bert

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?

rachels

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