When are social security benefits taxable? AND HOW DO YOU FIGURE THE TAX? (pay, taxes)

[Zelva]

When are social security benefits taxable? (We are newly receiving social security benefits this year.)

BIGGER QUESTION - HOW DO YOU FIGURE OUT THE TAX?

This is what I found:

Income Tax on Social Security Benefits.

The Basic Rule. Up to 50% of Social Security benefits are taxable if total “provisional income” (adjusted gross income, tax-exempt interest and one half of Social Security benefits) exceeds a base amount: $25,000 for single taxpayers and $32,000 for married taxpayers filing jointly. At this level, taxes are payable on the lesser of (1) 50% of Social Security benefits received, or (2) one half of the difference between provisional income and the applicable base amount.

The Second Tier. A second tier of income tax - reaching up to 85% of Social Security benefits received - kicks in (1) for single taxpayers with provisional income over $34,000, (2) for married taxpayers filing jointly with provisional income over $44,000, and (3) for all married taxpayers who file separate returns, but do not live apart.
http://www.nosscr.org/1pixel.gif (broken link)
For these second-tier categories, income taxes are payable on the lesser of (A) 85% of Social Security benefits or (B) the total of (1) 85% of the difference between provisional income and the applicable adjusted base amount ($34,000/$44,000), plus (2) the lesser of (a) half the benefits or (b) $4,500 (for singles / $6,000 (for married couples filing jointly). The adjusted base amount for married persons filing separately but living together is zero; taxes are payable on the lesser of 85% of benefits or 85% of provisional income.
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How do I translate that? (Do we need tax reform? - Dah! Another topic!!)

One makes about $46,000 per year and one receives $1,337 monthly social security starting in May. (H/W filing how ever is best.)

Wizards - How much Soc Sec will be taxable?

[Pilgrim21784]

Your 1040 package includes a worksheet for this purpose. I've used it previously with no problems.

[texdav]

Do the social security worksheet on page 29 .

[Zelva]

Thank you!! (Really!!)

I did try the worksheet on page 29, however, it says put the number (from 1040 line so/so) on line so/so of pg 29, and the number form line so/so on this line -- and I didn't want to go figure out what those lines were (look in another form / instructions that says put this number on line so/so if it's less/greater than so/so or look at the worksheet on page so/so) ------- but I just thought -- I can look at my 2009 1040 lines so/so's to kind of figure out what those numbers are for lines on page 29!!

I will tell you one thing for CERTAIN -- there is JUST NO WAY our tax calculus system could be any more complex!!!! (Evidence -- that so many of us have to hire experts and pay serious money to have it figured out!!)

THANKS AGAIN!!

[Gandalara]

Originally Posted by Zelva

Thank you!! (Really!!)

I did try the worksheet on page 29, however, it says put the number (from 1040 line so/so) on line so/so of pg 29, and the number form line so/so on this line -- and I didn't want to go figure out what those lines were (look in another form / instructions that says put this number on line so/so if it's less/greater than so/so or look at the worksheet on page so/so) ------- but I just thought -- I can look at my 2009 1040 lines so/so's to kind of figure out what those numbers are for lines on page 29!!

I will tell you one thing for CERTAIN -- there is JUST NO WAY our tax calculus system could be any more complex!!!! (Evidence -- that so many of us have to hire experts and pay serious money to have it figured out!!)

THANKS AGAIN!!

::: chortling :::


I'm sorry, I shouldn't be laughing, but that all sounds so familiar and true (line so/so, another form/instructions, line so/so, less/greater, line so/so).

Get TurboTax. That's what I had to do because of my Mom's finances. TT should walk you right thru it. (Or try the online version, I've never used that one)

[texdav]

If you can't use it then i suggest that you have your taxes prepared. With the tax laws this follow the numbers is as simple as it gets really.

[Zelva]

Thanks Texdav -- I always have my taxes prepared..... it's that I want to have the TAXES PAID for the year too, so I need to project or plan somehow.... so see my earlier post.... I think I can now use the page 29 thing.... and keep my rabbit's foot on my person all this first year!! :-D

[texdav]

Yepand just when you thnik you have it figured out they will change it.Of course if your the secretray of the treasury they let you off with no problem;claiming you were not aware it wasn't paid.I see alot of people that are compalining their not get as much of a return this year.duh;Obama changed the withholding tables to get people to spend it.Just when you have things figured out government wil change thi.ngs