Social Security Benefits Tax Calculator

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Social security benefits tax calculator is in a way concrete answer to often asked question – “Are social security benefits taxable?“. Well, social security benefits are taxable to some people and totally tax free for others as the taxation depends on the computation of total income and other phaseout values which are again dependent on your tax filing status.

Social security benefits aren’t taxed for people who only have income from Social Security. For all others , who earn any kind of income, it may or may not be taxable. Also, depending on where you live, your state your Social Security benefits may also be taxable in your state. You can refer section 86 of 26 US Code to know more about taxation of social security taxation

What Types of Social Security Income Taxable?

Actually ,all kinds of social security benefits taxable in the same way. Social security benefits ( you can check estimated social security benefit calculator) include monthly retirement benefits, survivor, and disability benefits.However, social security benefits paid to a child under his or her Social Security number (SSN) is taxable to the child, not the parent.

Exception to this rule is Supplemental Security Income which is a non-taxable as it is not considered part of Social Security benefits and does not figure into the taxable benefit formula.

IRS taxable social security calculator

How to compute taxable part of social security benefits?

If you want to compute whether the amount of social security you received is taxable and if taxable , how much , then first step is to add Modified Adjusted Gross Income with 50% of the social security benefits. This is called provisional income.Then compare the provisional income with the base amount which is as under for year 2019 & 2020:

  • $25,000 if you’re filing single, head of household, or married filing separately (living apart all year)
  • $32,000 if you’re married filing jointly
  • $0 if you’re married filing separately and lived together with your spouse at any point in the year

If your provisional income is more than the base amount, up to 50% of your social security disability benefits will usually be taxable. However up to 85% of benefits will be taxable if your provisional income is more than the adjusted base amount. The adjusted base amount is one of these:

  • $34,000 if you’re filing single, head of household, or married filing separately (living apart all year)
  • $44,000 if married filing jointly
  • $0 if you’re married filing separately and lived with your spouse at any time in the year

For precise computation of taxable amount out of social security benefit use Worksheet 1, of  Pub 915 

Should you file tax return if social security taxable ?

If your social security benefits are taxable, you must report them to IRS by filing appropriate tax return-Form 1040 or the Form 1040-SR, U.S. Tax Return for Seniors and filling in the appropriate fields

Stimulus check increase tax on social security benefit?

Stimulus checks will not increase your AGI or provisional income because the payments are not included in taxable income. Since your MAGI or provisional income doesn’t increase due to stimulus payment , the tax on your Social Security benefits won’t increase either.

By Prashant Thakur

Prashant Thakur is a tax advisor . He has written two books on tax laws of India. He regularly writes on his paid-only website http://taxworry.com. He is learning about the Internal Revenue Code of USA as many of clients and readers are of India origin and also are tax resident of USA . So . solving their tax issues require reference to IRC of USA.