Will Your 2016 Social Security Benefits Be Taxable?
- Here are some IRS tips to help you determine if your benefits are taxable:
- Social Security tax liability is determined by your income and filing status.
- If Social Security is your only 2016 income source, your benefits may not be taxable since you don’t have substantial income in addition to you benefits.
- If you received income from other sources, you may owe taxes on your Social Security benefits.
- Quick steps to determine whether Social Security benefits are taxable:
- Add ½ of your Social Security benefits received to your AGI, including tax-exempt interest. This is your “combined income.”
- Compare this to the base amount for your filing status below. If your combined income is more than your base amount, your Social Security benefits are likely taxable:
2016 Base Amounts:
$25,000 – single, head of household, qualifying widow or widower with a dependent child or married individuals filing separately who did not live with their spouse at any time during the year.
$32,000 – married couples filing jointly.
$0 – married filing separately who lived together at any time during the year.
As always, if you have questions about your situation, consult with your personal tax professional.
Source: www.ssa.gov