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Anonymous
Anonymous asked in Business & FinanceTaxesUnited States · 3 months ago

Are social security benefits taxed?

Say you get a SSA-1099 form each year, do you get taxed on the benefits you receive?

If you do, how does it make sense to tax on the benefits that you originally paid into? The whole point is to get it back, not to get it back and have it partially taken (taxed).

12 Answers

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  • 3 months ago

    Up to 85% of them may be.

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  • John
    Lv 6
    3 months ago

    If half of your social security plus your other taxable income and tax-exempt interest exceeds $25K ($32K if MFJ), then part of your social security will become taxable.  

    Social security started being taxed when Ronald Reagan was president.  At that time, seniors making over $25K were considered quite well off.  Those numbers were never adjusted for inflation, though, and after decades of rising costs the tax on RSDI now affects average retirees.

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  • 3 months ago

    If you have enough other income, they are taxed. Social Security is officially OASI. The I stands for insurance. You don't get insurance unless you need it. eg. auto crash or house burning or dying. If you don't need it you should not get any Social Security and wouldn't have to worry about a tax on it.

    • John
      Lv 6
      3 months agoReport

      The acronym OASDI was changed to RSDI decades ago.   Old Age was switched to the more genteel word Retirement.  Survivors and Disabilty Insurance make up the rest of the title.

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  • 3 months ago

    If it is your only income, no. If you have other income, maybe.

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  • 3 months ago

    There is a worksheet in the 1040 instructions for you to calculate if your SS is taxable, and how much is taxable. SS only becomes taxable when other income exceeds a certain amount. People for whom SS is their only income or a large percentage of it don't pay tax on the benefit.

    When SS IS taxable, no more than 85% of it is taxable. The 15% that is never taxed is calculated to be the return of the dollars you paid in plus the dollars your employer paid in. Everything else is a benefit, which is why it is potentially subject to taxation.

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  • 3 months ago

    Sometimes. If social security benefits are your only income then they are not taxed. If you also have other income, then it depends on how much other income you also have.

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  • Anonymous
    3 months ago

    Yes, up to 85% of your benefits are taxed depending on your overall income.  Suck it up Snowflake.

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  • 3 months ago

    im on ssi and i heard you dont have to do taxes when youre on it

    • John
      Lv 6
      3 months agoReport

      SSI is not taxable.  RSDI can be taxable, depending on the circumstances discussed in this thread. 

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  • Chris
    Lv 7
    3 months ago

    Few taxes make sense from a rational perspective. Why tax income in the first place? Shouldn’t society ENCOURAGE working for a living, instead of penalizing it?

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  • Anonymous
    3 months ago

    Question has already been asked thousands of times.

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