Social Security Benefits

Social Security Benefits

Social Security Benefits means:
the amounts paid monthly by the Social Security Administration to qualified recipients. Social Security benefits are made available to retired workers, their spouses and their dependents as well as to disabled workers, their spouses and their dependents. A portion of Social Security benefits is included in taxable income. The percentage included is 50% to 85%, depending on filing status and amount of income.

When a recipient's income is between the base amount (the tier 1 threshold) and the tier 2 amount, 50% of Social Security benefits is taxable. When the income is above the tier 2 amount, up to 85% of these benefits is included in taxable income. Income for this purpose is modified Adjusted Gross Income, which includes tax-exempt income such as municipal bond interest and half of Social Security benefits. Tier 1 amounts (base amounts) are $32,000 for married couples filing joint returns, and $25,000 for single persons and heads of households. Tier 2 amounts are $44,000 for married couples filing joint returns, and $34,000 for single persons and heads of households. For married persons who lived together during any part of the year but filed separate returns, the threshold amount is $0. Former IRC (check if this IRC provision is current here) §86.

Description and Definition of Social Security Benefits

The monthly benefits received from the Social Security Administration. Some or all of your benefits may be taxable depending on your income level.

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