If you receive Social Security Disability, Retirement, or Survivors benefits you may be liable to pay federal income tax on the benefits you receive. Your tax responsibility, if any, depends on your total income.
This typically comes into effect if you have other income; such as wages, self-employment income, interest, dividends, etc. if you are married, your spouse’s income will considered when determining any federal income tax you may owe.
According to the Social Security Administration’s website, you may have to pay taxes if:
- For a person filing as an individual, if your total income is between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits. If your total income is higher than $34,000 up to 85 percent of your benefits may be taxable.
- For a person filing a joint return, and you and your spouse’s total income is between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits. If you and your spouse’s total income is greater than $44,000, up to 85 percent of your benefits may be taxable.
- If you and your spouse file a separate tax return and have total earnings in the above $32,000, your benefits will likely still be taxed.
For more information, view the Social Security’s webpage: Benefits Planner: Income Taxes And Your Social Security Benefits.
According to the Social Security’s webpage, Tax requirements for SSI benefits, recipients of Supplemental Security Income benefits do not have to pay federal income tax.
