Taxes and Social Security

IS MY SOCIAL SECURITY TAXABLE? see IRS Publications 915 & 554
If you make over $25,000 and filing single, head of household or as a qualified widow/widower, you will pay tax on your income from Social Security
If you are married filing jointly, you will pay on amounts over $32,000
If you make over $34,000 ($44,000 MFJ) you pay on a larger portion of the social security.
The taxable percent of social security ranges from zero percent, then rises to 50%, and tops out at 85%. So, at least, you get 15% free of tax.

HOW DO I DETERMINE HOW MUCH SOCIAL SECURITY TO REPORT?
If you multiply your monthly check by 12, you will be wrong.
The taxable amount is the total of your checks PLUS the medicare deduction. It is shown in Box 5 of Form 1099SSA.
The medicare deduction is deductible as an itemized deduction on Schedule A, but if you don’t itemize and use the standard deduction instead, there is no deduction for Mcare.

IF I’M STILL WORKING AND DRAWING SOCIAL SECURITY WHAT HAPPENS?
You still have to pay social security and medicare even if you are drawing social security if you have any earned income.
However, your earnings can entitle you to an increase in your monthly social security income over and above the annual cost of living increase.

The above comments are presented as a general guideline. Details on exactly how to calculate the taxable amount, if any, are available from the IRS web site. http://www.irs.gov/

This information is not intended to be advice to the recipient.In compliance with Treasury Department Circular 230, unless stated to the contrary, any Federal Tax advice contained in this correspondence was not intended or written to be used and cannot be used for the purposes of avoiding penalties.