Taxes on Social Security Benefits?!

Posted on 02/10/2014 by | AARP Wisconsin | Comments

Social Security tax on form 1040Considering that your Social Security benefits are actually derived from a tax you’ve already paid, it’s strange that your monthly benefit may also be taxed, isn’t it? But so it goes.

The taxation of your Social Security actually benefits depends upon the level of your provisional income (also referred to as “combined income”). Provisional income is a measure used by the IRS to determine if an individual’s Social Security benefits are taxable. 

The tricky part can be figuring out the amount of your actual Social Security benefit that is taxable. That’s why AARP put together this worksheet to help determine how much in taxes you will have to pay on your benefits.

Need help with filing your taxes? The AARP Foundation Tax-Aide program offers FREE tax preparation assistance in communities across Wisconsin. Call 1-877-227-7669 or click here to find help near you.