Wow I was shocked to learn I have to pay some taxes on my Social Security payments. Do you all pay taxes on pension or SS benefits?

[pennyless]

I recently retired and I mistakenly assumed I didn't have to pay any state or federal taxes on my Social security benefits. I got the shock of my life when I found out I have to pay some taxes on it. I get my deceased husband's pension too. Do you all pay any taxes on your Social Security benefits?

I saw this article online and I'm in a similar situation as this woman in the article:

https://archive.is/5aBIK

 

[Vince]

I recently retired and I mistakenly assumed I didn't have to pay any state or federal taxes on my Social security benefits. I got the shock of my life when I found out I have to pay some taxes on it. I get my deceased husband's pension too. Do you all pay any taxes on your Social Security benefits?

I saw this article online and I'm in a similar situation as this woman in the article:

https://archive.is/5aBIK

It depends on income levels and also if you live in the USA or outside of the USA. You might want to check out this publication from the IRS:

https://www.irs.gov/pub/irs-pdf/p54.pdf

 

[StatusNomadicus]

gotta love the government taxing your already-taxed stuff, so you can pay for things that are taxed on top of the amount you spend with taxed money

 

[Betsy Ross]

This is a website from the IRS that you can check if you will get taxed. Poverty levels don't get taxed.

Are My Social Security or Railroad Retirement Tier I Benefits Taxable? | Internal Revenue Service

Determine if your social security or railroad retirement tier I benefits (and those of your spouse if you're married filing a joint tax return) are taxable.

www.irs.gov

 

[Wally]

I'm not a CPA, but let me simplify things for you. If your only income comes from Social Security and it's less than $25,000 a year, you don't have to worry about paying any taxes in the US. Your tax liability is basically zero.

 

[Flamingo]

I'm not a CPA, but let me simplify things for you. If your only income comes from Social Security and it's less than $25,000 a year, you don't have to worry about paying any taxes in the US. Your tax liability is basically zero.

This matches what my accountant in the USA told me.

 

[old fart]

I'm in the clear since my Social Security benefits are lower than the poverty line.

 

[Used]

The calculation involves adding half of your Social Security benefits to any other income, resulting in your provisional income. For individuals or those married filing separately, if the provisional income falls between $25,000 and $34,000, income tax is applied to 50% of the Social Security benefits; beyond $34,000, it's 85%. Married couples filing jointly have higher thresholds.

Established in 1983, this formula's income thresholds were initially considered high for retirees. Unfortunately, the rates haven't been adjusted for inflation since then. Consequently, a growing number of individuals find themselves obligated to pay taxes on their Social Security benefits each year due to this static structure.