How Do You Calculate Taxable Social Security Income?
More than 50 million people receive Social Security benefits in the United States. Once a person reaches the Social Security retirement age, he is eligible to receive Social Security benefits. The earliest age for retirement benefits is 62. Others covered by Social Security benefits include spouses, widows, children and disabled persons. Social Security benefits may or may not be taxable. Determine if you have income other than Social Security benefits. Other income includes interest, dividends, pensions and wages. If you have no other income, you will not have to pay taxes on your Social Security benefits and may not have to file a tax return (see Resources). Gather all income statements from the relevant tax year. This includes short-term and long-term capital gains, dividends, interest, pension distributions, IRA distributions, Roth IRA distributions, wages and self-employment income. Also gather SSA 1099 paperwork from the Social Security Administration. Estimate your taxable Socia
