Taxing Social Security Benefits

by ofnews on 2010/10/09

in ,Financial Services,economy

If you’re the recipient of any Social Security benefits for 2009 or 2010 then there are some things that you’re going to need to know, like whether they are taxable or not. 

The most common benefits are as follows:

·    Federal old age, survivors, and disabilities

·    Unemployment 

·    Temporary assistance for needy families

·    Medicare

·    Medicaid

·    State health insurance children’s benefits

·    Supplemental security income

The US Social Security program is the largest government program in the world and is also the single greatest expenditure in the federal budget.

If Social Security benefits were your sole source of income for any given year, they are probably not taxable and you may or may not need to file a tax return. Your taxable benefits will be calculated through the tax sheet 1040a. This will be taken into account for you automatically if you file with a tax service like TurboTax Online. They’ll tell you exactly what you have to pay taxes on, and how much.

Here’s a trick to use to get an idea about whether your benefits will be taxed or not:  take one half of the benefits you received and add this to the amount of total income you received for the year. Compare this number to your tax base, and if the first number exceeds your tax base then chances are you’re going to have to pay taxes on the benefits you received this year. 

The base for those filing jointly is $32,000, and it’s set at $25,000 for those filing single returns. There’s plenty more to it than that of course, and it’s stuff that you’re responsible to know for yourself. Do yourself a favor and get the details you need from a tax service like TurboTax Online They have all of the information you could ever hope for in regards to your tax situation or questions. Their article library is free, and should you need some more info, you’ll be guided to the next spot where

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