Social Security Retirement Insurance

Depending on your income and tax filing status, a portion of your social security benefits may be taxable.

If you file a federal tax return as an "individual:"

• If your combined income* is between $25,000 and $34,000, you may have to pay taxes on 50 percent of your Social Security benefits.
• If your combined income* is above $34,000, up to 85 percent of your Social Security benefits is subject to income tax.

If you file a joint return:

• You may owe income taxes on 50 percent of your benefits if you and your spouse have a combined income* that is between $32,000 and $44,000.
• If your combined income* is more than $44,000, up to 85 percent of your Social Security benefits is subject to income tax.

If you are married and lived with your spouse at any time during the years and filed separately:

• 85% of your Social Security benefits may be taxable.

* "Combined" income means you and your spouse's adjusted gross income (as reported on your Form 1040) plus nontaxable interest plus one-half of your Social Security benefits.

At the end of each year, you will receive a Social Security Benefit Statement (Form SSA-1099) in the mail showing the amount of benefits you received. You can use this statement when you are completing your federal income tax return to find out if any of your benefits are subject to tax.

For more information on tax on your Social Security benefits, call your accountant or tax attorney. You can also call the Internal Revenue Service's toll-free telephone number, 800.829.3676 to ask for Publication 554, Tax Information for Older American available at: http://www.irs.gov/pub/irs-pdf/p554.pdf .

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