How do social security benefits affect my taxes?

How do social security benefits affect my taxes?

Social Security benefits can be taxable depending on your total income. If your combined income exceeds certain thresholds, you may have to pay taxes on up to 85% of your benefits.

What are the income thresholds for taxing social security benefits?

For single filers, if your combined income is between $25,000 and $34,000, up to 50% of your benefits may be taxable. Above $34,000, up to 85% may be taxable. For married couples filing jointly, the thresholds are $32,000 and $44,000.

Are there any deductions I can take to lower my taxable income?

Yes, you can consider deductions such as medical expenses, mortgage interest, and state taxes paid, which can help lower your taxable income.

What if I only receive social security and no other income?

If Social Security is your only income, it's likely that you won't owe any federal taxes, as your income would be below the taxable thresholds.