How does my income taxes affect my social security?

Your income taxes do not directly affect your Social Security benefits. However, the amount of Social Security benefits you receive may be subject to federal income tax, depending on your total income and filing status.

The Social Security Administration (SSA) determines your monthly benefit amount based on your earnings history and the age at which you start receiving benefits. The SSA does not consider your tax situation when calculating your benefits.

However, if you have other income in addition to your Social Security benefits, a portion of your benefits may be subject to federal income tax. The amount of your benefits that is subject to tax depends on your combined income, which is your adjusted gross income plus one-half of your Social Security benefits plus any tax-exempt interest you receive.

If your combined income is above a certain threshold, up to 85% of your Social Security benefits may be subject to federal income tax. The thresholds vary depending on your filing status. For example, if you are married and file a joint return, up to 50% of your benefits may be subject to tax if your combined income is between $32,000 and $44,000. If your combined income is above $44,000, up to 85% of your benefits may be subject to tax.

It’s a good idea to consult with a tax professional in our office or refer to IRS Publication 915, “Social Security and Equivalent Railroad Retirement Benefits,” for more information on the taxability of Social Security benefits.

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