I retired and started receiving social security payments. Do I have to pay taxes on my social security benefits?
Social security benefits include monthly retirement, survivor and disability benefits. They do not include supplemental security income (SSI) payments, which are not taxable. The amount of Social security benefits you receive are not taxable until your income reaches certain thresholds. The income threshold is in excess of $25,000 for single filers or $32,000 for married filers. Only a maximum of 85% of your social security benefits will be subject to income tax. Ketel Thorstenson LLP can assist you in these computations and help plan to minimize the tax effect to you.
If you have other questions about social security benefits or the preparation of your tax return call the Tax professionals at Ketel Thorstenson today, 605-342-5630.
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