Income Taxes And Your Social Security Benefit

ome of you will have to pay federal income taxes on your Social Security benefits.

File a federal tax return as an "individual" and your combined income* is between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your distributions.

Over $34,000, up to 85 percent of your benefits may be taxable.

Filing a joint tax return, and you and your spouse have a joint income*, which is between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your distributions.

Over $44,000, up to 85 percent of your benefits may be taxable. If you are married and file a separate tax return, you will probably pay taxes on your gains.

Each January, you will receive a Social Security benefits statement (Form SSA-1099) showing the number of benefits you received in the previous year.

You can use this benefit statement when you file your federal income tax return to find out whether your benefits are taxable.

If you have to pay taxes on your Social Security benefits, you can make quarterly estimated tax payments to the IRS or choose to withhold federal taxes from your benefits.

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