How do I file taxes on my Social Security benefits?

How do I file taxes on my Social Security benefits?

Filing taxes on Social Security benefits can be a bit complex. Generally, if your total income exceeds a certain threshold, you may need to pay taxes on your benefits. Would you like to know the specific income limits?

Yes, what are the income limits for 2023?

For 2023, if you file as an individual and your combined income is between $25,000 and $34,000, you may have to pay taxes on up to 50% of your benefits. If it's over $34,000, up to 85% may be taxable. Do you need help with calculating your combined income?

Yes, how do I calculate my combined income?

Your combined income is calculated by adding your adjusted gross income, nontaxable interest, and half of your Social Security benefits. Would you like a detailed example?

That would be great, please provide an example.

Sure! Let's say your adjusted gross income is $20,000, you have $1,000 in nontaxable interest, and you receive $10,000 in Social Security benefits. Your combined income would be $20,000 + $1,000 + ($10,000 / 2) = $25,000.