1 Answer
Social Security benefits are not taxable if your income is below a certain level.
1
Add up your adjusted gross income, nontaxable interest and one-half of your Social Security benefits. This total is your combined income.
2
Determine the base amount for your filing status. If you are married and filing jointly, the base amount is $32,000. If you are married and filing separately and have lived with your spouse at any time during the year, your base amount is $0. For anyone else, the base amount is $25,000.
3
Compare your base amount and your combined income. If the base amount is larger than the combined income, your Social Security benefits are not taxable.
4
Use the IRS worksheet to determine the tax on your Social Security benefits if your combined income is equal to or larger than your base amount.
Read more: How to Determine if Social Security Benefits Are Taxable | eHow.com http://www.ehow.com/how_12343_determine-social-security.html#ixzz1m1KM1a39
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