Social Security benefits remain taxable
Despite all the talk about reducing income taxes starting this year, Social Security benefits are still taxed the same way based on combined income, which includes a taxpayer’s adjusted gross income, plus tax-exempt interest and half of their Social Security benefits.
Individuals’ whose combined income is between $25,000 and $34,000 pay income taxes on up to half of their benefits. Once their combined income tops $34,000, they pay income taxes on to 85% of their benefits. Married couples with combined incomes between $32,000 and $44,000 pay taxes on up to 50% of their Social Security benefits. Once their income tops $44,000, they pay taxes on up to 85% of their benefits.