Gregory J. Cook, EA, CPA on Social Security Benefits and Taxes

Are Social Security Benefits Taxable?

Tax Formula

Here’s a quick way to find out if a taxpayer must pay taxes on their Social Security benefits:
Add one-half of the Social Security income to all other income, including tax-exempt interest. Then compare that amount to the base amount for their filing status. If the total is more than the base amount, some of their benefits may be taxable.

Base Amounts

The three base amounts are:

  1. $25,000 – if taxpayers  are single, head of household, qualifying widow or widower with a dependent child or married filing separately and lived apart from their spouse for all of 2016
  2. $32,000 – if they are married filing jointly
  3. $0 – if they are married filing separately and lived with their spouse at any time during the year.

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