Personal Taxes: Social Security Income FAQs

The amount of social security benefits that must be included on your income tax return and used to calculate your income tax liability depends on the total amount of your income and benefits for the taxable year.

To find out whether any of your benefits may be taxable, compare the base amount for your filing status with the total of:

• One-half of your benefits.
• All of your other income, including tax-exempt interest.

The base amount for your filing status is shown next:

• $25,000 if you are single, head of household, qualifying widow(er) or married filing separately living apart from your spouse at any time during the tax year.
• 32,000 if you are married filing jointly.
• $-0- if you are married filing separately living with your spouse at any time during the tax year.

The taxable amount of the benefits can be figured on a worksheet in the Form 1040 Instructions or Form 1040A Instructions, or in Tax Topic 423, Social Security and Equivalent Railroad Retirement Benefits

Additional information:

• Tax Topic 423, Social Security and Equivalent Railroad Retirement Benefits
• Publication 915, Social Security and Equivalent Railroad Retirement Benefits

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Q:

You cannot amend returns for prior years. You must include the taxable part of a lump-sum (retroactive) payment of benefits received (reported to you on Form SSA-1099) in the current year in your current year's income, even if the payment includes benefits for an earlier year.

There are two ways to determine the amount of income to include:

• You can use your current year's income to figure the taxable part of the total benefits received in the current year. OR
• You may make an election to figure the taxable part of a lump-sum payment for an earlier year separately, using your income for the earlier year.
• You can select the lump-sum election method if it lowers the taxable portion of your benefits.
• Under this method you refigure the taxable part of all your benefits for the earlier year using that year¿s income.
• Then you subtract any taxable benefits for that year that you previously reported.
• The remainder is the taxable part of the lump sum payment.
• There are worksheets in Publication 915, Social Security and Equivalent Railroad Retirement Benefits, to help you calculate the taxable portion using this method.

Additional information:

• Tax Topic 423, Social Security and Equivalent Railroad Retirement Benefits
• Publication 915, Social Security and Equivalent Railroad Retirement Benefits

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Q:

• The person who has the legal right to receive the benefits must determine whether the benefits are taxable.
• If you and your child receive benefits, but the check for your child is made out in your name, you will use only your part of the benefits to see whether any benefits are taxable to you.
• The amount of income tax that your child must pay on that part of the benefits that belong to your child depends on the total amount of income and benefits for the taxable year.

Additional information:

• Tax Topic 423, Social Security and Equivalent Railroad Retirement Benefits
• Publication 915, Social Security and Equivalent Railroad Retirement Benefits

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