Did you know that Social Security will pay $53.7 billion to 50.9 million beneficiaries in 2009? Did you also know that this will be paid to 32.3 million retired workers and three million of their dependents?
But did you also know that some people who get Social Security benefits will have to pay taxes on their benefits. They will be affected only if they have substantial income in addition to their Social Security benefits.
If you file a federal tax return as an “individual” and if your combined income* is between $25,000 and $34,000, 50 percent of Social Security benefits may be subject to income tax.
If combined income* is above $34,000, up to 85 percent of Social Security benefits is subject to income tax.
If you file a joint tax return and if your combined income* is between $32,000 and $44,000, 50 percent of Social Security benefits may be subject to income tax.
If combined income* is more than $44,000, up to 85 percent of Social Security benefits is subject to income tax.
*”Combined” income means adjusted gross income (as reported on Form 1040); plus nontaxable interest, plus one-half of Social Security benefits.
About 34% of current Social Security beneficiaries have incomes that exceed the thresholds, requiring them to pay taxes on a portion of their Social Security benefits.
A person can voluntarily elect to have federal taxes withheld from their Social Security benefits by completing and returning Internal Revenue Service (IRS) Form W-4V (Voluntary Withholding Request) to the Social Security Administration (SSA).
PLEASE NOTE:
SSA is not an authority on tax matters. For additional information about the taxation of Social Security benefits, please contact the IRS.
