The Peck Group, LC
  • Comprehensive Tax Law Representation Since 1995

    We handle every aspect of tax law: preparing tax returns, representing clients during audits, resolving IRS and state tax controversies, and creating tax planning strategies for the future.

  • Problems With The IRS Or State Tax

    Our attorneys are committed to providing efficient and effective tax solutions for individuals and businesses in Georgia and nationwide.

  • Planning For The Future

    Our lawyers help individuals and businesses with all aspects of estate and tax planning. We help our clients use proactive strategies to minimize tax implications in the future

  • Changing The Balance Of Power

    Does it feel like the government has all the power? Taxpayers have rights, too. We use our knowledge of tax law to shift the balance of power and ensure that your rights are protected.

  • Tax Solutions … And Peace Of Mind

Are my Social Security benefits taxable?

You did it. You finished up your long, dedicated career, and it’s finally time to take a well-deserved break. You worked hard throughout your adult life, and you’ve comprehensively planned for your financial future. It’s smooth sailing from here on out—time to kick back and let the benefits checks roll in.

While you realize you’ve contributed to Social Security throughout your working life, you might be surprised to learn that this benefit can actually be taxable in retirement. In this post, we examine the circumstances under which you’ll have to pay taxes on Social Security:

Income cutoffs

If, as a retiree, your income is low—or if your sole source of income is your Social Security benefit, it’s unlikely you’ll have to pay taxes on it. However, if your income is above a certain threshold, you may owe taxes. A quick calculation can determine your situation.

Add the following together:

  • Your annual adjusted gross income
  • Your nontaxable interest
  • 50 percent of your Social Security benefit

If your total is more than $25,000 if you’re single—and $32,000 if you’re married—then you’ll have to pay taxes on 50 percent of your Social Security benefit. If your total is more than $34,000 if you’re single—and $44,000 if you’re married—then you’ll have to pay taxes on 85 percent of your benefit.

Likelihood of being taxed

Presently, around 60 percent of retirees fall below this threshold. However, it’s worth noting that the cutoffs stated above don’t change with inflation over time. So if you retire 20 years from now, it’s more likely that your income will be above this marker, and the chances are higher that you’ll wind up paying taxes on your Social Security benefit.

No Comments

Leave a comment
Comment Information
Email us for a Response

Talk to an Attorney

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

The Peck Group, LC
5855 Sandy Springs Circle N.E., Suite 190
Atlanta, GA 30328

Phone: 770-884-6914
Fax: 770-933-2369
Atlanta Law Office Map

Payment Cards