What is Taxation of Social Security benefits?
In short
Up to 85% of Social Security benefits are included in gross income, depending on provisional income: modified adjusted gross income plus tax-exempt interest plus half of the benefits.
Key takeaways
- Nothing is taxable if provisional income is $25,000 or less ($32,000 joint).
- Up to 50% is taxable between those amounts and $34,000 ($44,000 joint), and up to 85% above them.
- These thresholds aren't adjusted for inflation.
Where it's tested
REG: Individual Taxation: Gross Income — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Under the federal tax rules, what is the maximum portion of Social Security benefits that can be included in a recipient's gross income?