Like many questions about taxes, whether or not social security benefits are taxable does not have a yes or no answer. If social security benefits are your only source of income, they are most likely not taxable, and you may not even have to file a return. However, if you have additional income, such as a pension or investment income, then you may have to pay taxes on your social security benefits as well.
How Do I Know If My Benefits Are Taxable?
In general, it’s based on a combination of a portion of the social security benefits that you receive and your other income.
- If you’re single and that total is between $25,000 and $34,000, you may have to pay taxes on 50% of your benefits. If that total is over $34,000 you may have to pay taxes on up to 85% of your benefits.
- If you’re married filing jointly and that total is between $32,000 and $44,000, you may have to pay taxes on 50% of your benefits. If that total is over $44,000 you may have to pay taxes on up to 85% of your benefits.
**Keep in mind: Even if you don’t have to pay taxes on your benefits, you may still have to file a tax return.
Social Security Benefits vs Supplemental Security Income
Social security benefits are what you pay into during your working years and start receiving when you retire. Supplemental Security Income (SSI) is for those who are disabled or seniors with low income. SSI is not taxable.
Are My Social Security Benefits Taxable in California?
California does not tax any social security income.
We know it’s confusing but we’re here to help. Contact one of our tax preparers today.
**Please keep in mind: Tax laws and rates change often, and these lists are not exhaustive. Always contact a tax preparer for the most up-to-date information.