Will Your 2016 Social Security Benefits Be Taxable?

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:
    1. Add ½ of your Social Security benefits received to your AGI, including tax-exempt interest. This is your “combined income.”
    2. 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

More Updates


For trusts that inherited an IRA in 2019, an important deadline is approaching. The due date to provide required trust documentation to the IRA custodian to ensure that the longest payout period possible is available for the inherited IRA is October 31, 2020. Generally, only individuals who are named on an IRA beneficiary form can

Read More »


The coronavirus-related distribution (CRD) rules for Roth conversions have a gaping hole. An “affected person” (as we have defined in previous blogs), is entitled under the CARES Act to withdraw up to $100,000 from their IRA or workplace retirement plan. A CRD avoids the 10% early distribution penalty for those under 59 1/2, can be

Read More »

Rolling Over an RMD

Like most people’s lives, the retirement world is upside down. This is made evident by a single statement: “Required minimum distributions (RMDs) can be rolled over.” Yes, that is the new normal—at least for this year. RMDs are considered the first money out of an IRA and workplace plan. Typically, these dollars are ineligible to

Read More »
Scroll to Top