I have been asked a couple of times this tax season when.....

When are Social Security benefits taxed!  The easy answer, when you......ok let's look....

How is Social Security Income Taxed?

When your retirement is approaching you have look at everything – such as all of your income streams retirement and your living expenses you’ll be expecting.  Something that you also want to check are taxes you’d be expected to pay, specifically taxes on your Social Security income.  Key question: Will My Social Security Income Be Taxed?

Not everyone has to pay taxes on their Social Security benefits. To see if your Social Security will be taxed, you have to look at your combined income and your marital status. According to IRS the income thresholds for Social Security are:

• If you’re single and your total combined income (see below) for the year is between $25,000 and $34,000, then up to 50% of your benefits can be taxed.
• If you’re single and your total combined income for the year is greater than $34,000, then up to 85% of your benefits can be taxed.
• If you’re married filing jointly and your total combined income for the year is between $32,000 and $44,000, then up to 50% of your benefits can be taxed.
• If you’re married filing jointly and your total combined income for the year is greater than $44,000, then up to 85% of your benefits can be taxed.

* Combined Income-Combined income when figuring tax on social security income is Adjusted Gross Income plus nontaxable interest plus 1/2 of social security benefits.