Worksheet to Figure Taxable Social Security BenefitsMany of those who receive Social Security retirement benefits will have to pay income tax on some or all of those payments. More specifically, if your total taxable income (wages, pensions, interest, dividends, etc.) plus any tax-exempt income, plus half of your Social Security benefits exceed $25,000 for singles, $32,000 for marrieds filing jointly, and $0 for marrieds filing separately, the tax man will want a cut of your benefits. The taxable portion can range from 50% to 85% of your benefits. The worksheet provided can be used to determine the exact amount. The file is in rich text format (RTF) that is suitable for use with most word processing programs used in the Windows environment. For more information, see our discussion of the taxation of Social Security benefits. |