Social Security Tax

How Is Social Security Taxed – None of a taxpayer’s social security benefits are included in income if provisional income doesn’t exceed the base amount. Provisional income is the taxpayer’s modified adjusted gross income plus half of the social security benefits received during the taxable year. The base amount is $25,000 for single, head of household, and married filing separate (living apart all year) or $32,000 for married filing jointly. If the taxpayers file MFS and lived together during the year, the base amount is $0.
Up to 50% of the social security benefits are taxable if the taxpayer’s provisional income exceeds the base amount but the social security benefit is less than the “adjusted base amount.” Adjusted base amount means $34,000, $44,000 in the case of a joint return, and $0 if the taxpayers file MFS and lived together at any time during the year.
Up to 85% of social security benefits are taxable if provisional income exceeds the adjusted base amount.
Note: All social security benefits-regardless of whether they are retirement, survivors, or disability benefits-are taxed in the same way to the recipient of the benefits.
See IRS Pub. 915, Social Security and Equivalent Railroad Retirement Benefits (see attached worksheet).
Social Security Worksheet