Will my Social Security benefits taxable?
It depends on your income. Taxation of Social Security benefits are based on your “total income”, this is your adjusted gross income plus 50% tax-free interest and your social security benefits (bottom of the table on page 1 1040).
If your total income is less than $ 25,000 if you are single or $ 32,000 if you file a joint return your earnings are tax-free. Above this level, up to half of your tax benefits, if your gross income up to $ 34,000 return on a joint return or $ 44,000. Your tax and social security benefits up to 85%, if your total income is more than a single return or $ 34,000 filing jointly $ 44,000. See details of your income tax and social security benefits.
Action to be careful you do, you can improve your income and increase social security tax, such as a traditional IRA to a Roth began to receive the Social Security benefits. In contrast, in a year he made a big conversion, you may want to spread out your conversion a few years, if that helps you stay in the cut-off below about your tax benefits. In addition, by reducing the minimum required currency circulation open 70½, can help you keep off the following income tax on social security benefits. For example, Roths are not RMD to make more money you convert from a traditional IRA to Roths Through the years, less money, which will be distributed SUBJECT to the minimum required.
For more information on Social Security, see the best strategy to improve your social security benefits.