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