Q:

Are Social Security benefits taxable?

A:

Quick Answer

Social Security benefits can be taxable depending on the amount of income that is earned in addition to the Social Security payment. Taxpayers with additional income can be taxed if their income plus 1/2 of their Social Security benefit exceeds established thresholds.

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Full Answer

The IRS provides a Social Security Benefits worksheet to determine whether taxes are owed, and if so, how much. The amount owed on taxes increases for every dollar earned over the threshold. Only up to 85% of an individual's Social Security benefits can be taxed. Taxation of benefits affects only beneficiaries who have additional income from employment, interest or dividends. Over 59 million Americans received Social Security payments in 2014.

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