When Are Benefits Taxable?
Part of the following benefits received by the taxpayer may be taxable:
The amount from box 5 of Form SSA-1099 or Form RRB-1099 is used to calculate the taxable portion of the benefits. The taxable amount, if any, of a taxpayer's social security (or social security equivalent) benefits depends upon:
A portion of the benefits is taxable if total income (including tax-exempt interest) plus one-half of the benefits received is more than certain base income amounts, which vary based upon filing status. A portion of the benefits is also taxable if the taxpayers are filing Married Filing Separately and lived with their spouse at any time during the year.
If the taxpayer received social security benefits and other income, complete the Social Security Benefits Worksheet to calculate the taxable portion.
The taxable portion of social security benefits is never more than 85% of the net benefits the taxpayer received. In many cases, the taxable portion is less than 50%.