Some people who get Social Security will have to pay taxes on their benefits. You'll be affected only if you have substantial income in addition to your Social Security benefits.
Some people who get Social Security will
have to pay taxes on their benefits. You'll be affected only if you
have substantial income in addition to your Social Security benefits.
If you file a federal tax return as an "individual," and your combined
income is between $25,000 and $34,000, you may have to pay taxes on
50 percent of your Social Security benefits. If your combined income
is above $34,000, up to 85 percent of your Social Security benefits
is subject to income tax.
If you file a joint return, you may have
to pay taxes on 50 percent of your benefits if you and your spouse
have a combined income that is between $32,000 and $44,000. If your
combined income is more than $44,000, up to 85 percent of your Social
Security benefits is subject to income tax.
If you are married, but
file a separate return, you probably will pay taxes on your benefits.
Although you're not required to have federal taxes withheld, you may
find it easier than paying quarterly estimated tax payments.
To have
federal taxes withheld, you can get a form W-4V from the Internal
Revenue Service (IRS) by calling the IRS toll-free number, 1-800-829-3676,
or by visiting www.ssa.gov on the Internet. After completing and signing
the form, return it to your local Social Security office by mail or
in person.
To get the address of your local Social Security office, visit http://www.ssa.gov
or call 1-800-772-1213.
Each time you want to make
a change (or stop the withholding), complete a W-4V and send it to
Social Security.
Note: "Combined" income means you and your spouse's adjusted gross
income (as reported on your Form 1040) plus nontaxable interest plus
one-half of your Social Security benefits.
For More Information: If you would like more information about
the taxation of your Social Security benefits, there are some IRS
publications that will help you. Call or visit IRS to ask for a copy
of Tax Information for Older Americans (Publication No. 554), and
Social Security Benefits And Equivalent Railroad Retirement Benefits
(Publication No. 915).
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