Your total in this first calculation is $40,000, and you use the Social Security Benefits worksheet to determine the actual amount taxable. If the result is $34,000 - or $44,000 for married couples filing jointly - then a portion of the benefit is taxable. ![]() You can figure this out by adding up your other source of income and using 50 percent of your Social Security benefits in your calculation. Remember, up to 85 percent of your Social Security income may be taxable, but depending on your overall income, you may not owe taxes on it. You have $10,000 in Social Security income, $15,000 from a part-time job and you expect to withdraw $20,000 from your 401(k).Ĭhristie Tornikoski, a tax accountant at Spire Financial Consulting LLC in New Hampshire, said the first step is to calculate how much of your Social Security benefit is taxable. The brackets apply only to the amount of taxable income that remains after subtracting any deductions and exemptions you’re entitled to claim. ![]() The United States uses a progressive tax rate that consists of seven tax brackets.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |