Up to 85 percent of a Social Security benefit may be subject to taxation according to the official Social Security website. The amount of a Social Security benefit that is subject to taxation is based upon individual financial circumstances.Continue Reading
Taxes are typically only paid on Social Security benefits when other substantial income exists, as stated on the official Social Security website. The portion of a Social Security benefit that will be taxed is determined by total combined income and filing status.
With a married and filing separate status, Social Security benefits will likely be subject to taxation. Filing an individual return with a combined income of more than $34,000 or a joint return with more than $44,000 in combined income may subject up to 85 percent of the Social Security benefits to taxation, states the official Social Security website.
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. Over 59 million Americans received Social Security payments in 2014.Learn more about Taxes