How Are Social Security Benefits Taxed?
Social security benefits can be subject to taxes as follows.
If your client files as single and their provisional income is:
between $25,000 and $34,000, they may have to pay taxes on up to 50% of their Social Security benefits.
greater than $34,000, they may have to pay taxes on up to 85% of their Social Security benefits.
If your client files as married and joint and their provisional income is:
between $32,000 and $44,000, they may have to pay taxes on up to 50% of their Social Security benefits.
greater than $44,000, they may have to pay taxes on up to 85% of their Social Security benefits.
Clients who are married and file separately will likely pay taxes on their benefits as well.
Comments