Provisional Income and Calculating Taxable Social Security Benefits

Title: Social Security and Taxes

Article Snip: "...Most retirees do not have to pay federal income taxes on their Social Security benefits, but for those who receive substantial income in addition to Social Security, up to 85 percent of the benefits may be taxable. According to the Social Security Administration, about one third of benefit recipients pay federal taxes on their Social Security benefits. The Social Security benefits may become taxable when retirees’ “provisional income” exceeds certain limits...combined income is greater than $44,000, then up to 85 percent of your benefit may be taxable...U.S. citizens who live in Canada and certain other countries (Egypt, Germany, Ireland, Israel, Italy, Romania or the United Kingdom) are exempt from U.S. tax on Social Security benefits regardless of their income. A lump sum death benefit is not subject to tax either..."

Reference: www.aarp.org
Provisional Income,Calculating Taxable Social Security Benefits, tax