This taxable benefit calculator makes it simple for you to show clients how much of their benefit is taxable. Note that not everyone pays taxes on benefits, but clients who have other income in retirement beyond Social Security will likely pay taxes on their benefit. Show
If you have clients who earn more than a certain amount from other sources while also collecting Social Security, part of their benefit payment must be added to their taxable income on their tax return. Find out how much with this easy, free calculator. Filing Status Enter total annual Social Security (SS) benefit amount Enter taxable income excluding SS benefits Enter the total of any exclusion for U.S. savings bond interest, foreign-earned income, or housing. Enter total adjustments/deductions The amount of Social Security benefits subject to federal income tax.For advisor use only. This calculator should not be used to provide tax or legal advice. For specific advice, please contact an experienced attorney or CPA. Up to 50% or even 85% of your Social security benefits are taxable if your “provisional” or total income, as defined by tax law, is above a certain base amount. Your Social Security income may not be taxable at all if your total income is below the base amount. If you’re married and filing jointly with your spouse, your combined incomes and social security benefits are used to figure your total income. To
determine when Social Security income is taxable, you’ll first need to calculate your total income. Generally, the formula for total income for this purpose is: your adjusted gross income, including any nontaxable interest, plus half of your Social Security benefits. If you’re married and filing jointly with your spouse, your combined incomes and social security benefits are used to figure your total income. Then you’ll compare your total income with the base amounts for your filing status to find out how much of your Social Security income is taxable, if any. You’ll see that you fall into one of three categories. If your total income is:
How Much of Your Social Security Income is Taxable?Review the list below to determine where your total income falls and how much of your Social Security income is taxable. For:
Are All Kinds of Social Security Income Taxable?All social security benefits are taxable in the same way. This is true whether they’re retirement, survivors, or disability benefits. Take note that Social Security benefits paid to a child under his or her Social Security number (SSN) could be potentially taxable to the child, not the parent. Note: Supplemental Security Income, or SSI, is a non-taxable needs-based federal benefit. It is not part of Social Security benefits and does not figure into the taxable benefit formula. Related Topics
IRS Tax Tip 2022-22, February 9, 2022 A new tax season has arrived. The IRS reminds taxpayers receiving Social Security
benefits that they may have to pay federal income tax on a portion of those benefits. Social Security benefits include monthly retirement, survivor and disability benefits. They don't include supplemental security income payments, which aren't taxable. The portion of benefits that are taxable depends on the taxpayer's income and filing status. To determine if their benefits are taxable, taxpayers should take half of the Social Security money they collected during the year and
add it to their other income. Other income includes pensions, wages, interest, dividends and capital gains.
Fifty percent of a taxpayer's benefits may be taxable if they are:
Up to 85% of a taxpayer's benefits may be taxable if they are:
More information:
Subscribe to IRS Tax Tips Page Last Reviewed or Updated: 14-Mar-2022 |