Taxes on Your Social Security

Did you know that your Social Security benefit may not be totally tax free? The projected amount of Social Security may be taxed as income. As an example, currently if a married couples’ total household income is over $32,000, they will owe taxes on some their Social Security income. For purposes of calculating Social Security taxes, the government looks at: adjusted gross income plus tax-exempt income plus half of all Social Security benefits received If adding all those streams totals between $32,000 and $44,000, the couple pays income tax on up to 50% of the Social Security income. If those streams top $44,000, they could be paying federal income taxes on up to 85% of their Social Security income. The important idea to consider when calculating expected Social Security retirement income is that what you may see not be what you get to keep.