Do You Pay Taxes on Social Security Administration Benefits?

The answer is maybe.

If you earn what the Social Security Administration (SSA) calls “substantial income” outside of your benefits, then you might have to pay taxes.

If you are filing your return as an individual and your benefits plus that additional income adds up to $25,000 -- $34,000, you may have to pay a tax on 50 percent of your benefits.  That number increases to 85 percent for amounts over $34,000,

If you are filing a joint return and your benefits and additional income add up to $32,000 -- $44,000, you may have to pay a tax on 50 percent of your benefits.  That number also increases to 85 percent for amounts over $44,000.

The SSA has a handy web page that goes into a bit more detail for those interested.

If you or your child have been denied disability benefits or suffer from a severe impairment that is expected to last more than twelve months and that prevents you from doing any of your past or other work or is causing developmental delay, please contact our office nearest to you to set up a free consultation appointment to discuss your situation.