How Are Social Security Benefits Taxed?
A lot of people wonder if their Social Security benefits are going to be taxed, and if so at what rate? Well the answer is it all depends on what you have coming in for income from other sources. To find out you need to calculate your Provisional Income. Nothing’s easy with the IRS right? Let’s see how to figure this out:
So Just What is Provisional Income?
To calculate your Provisional Income, first add up all of your gross income, plus non-taxed interest income and one-half of your Social Security Income. If this number exceeds the thresholds listed above then the amount above the threshold amount is taxed.
It is also taxed on the state level.
