The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • QR Code
  • Books
  • Categories
  • Coaching
  • Hire Lynnette
  • Money Coach University™
  • The Money Coach Recommends™
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • QR Code
No Result
View All Result
The Money Coach
No Result
View All Result

7 Ways to Know if Your Social Security Benefits are Taxable

Lynnette Khalfani-Cox, The Money Coach by Lynnette Khalfani-Cox, The Money Coach
in Taxes
Reading Time: 2 mins read
7
SHARES
122
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

If you received Social Security benefits in 2011, did you know that your benefits could be taxable?

Make sure you review Form SSA-1099 from the Social Security Administration to determine the total amount of benefits you received for the year. You will need this information to determine if your benefits are non-taxable, partially taxable, or wholly taxable.

The key, determining factor here is what your total income is from other sources.

Social Security benefits are only one source of income so if you are earning money elsewhere, you may end up paying a significant amount in taxes on all of your sources of income.

Here are the IRS’s seven tips for determining whether your social security benefits are taxable:

1- Determine what your income level is. The amount of your taxable Social Security benefits depends on your income and marital status.

2- Determine all sources of income. If your Social Security benefits were your only source of income in 2011, you benefits won’t be taxable – you probably won’t even need to file a federal income tax return. If you did earn an income from multiple sources, part or all of your benefits may be subject to income tax.

3- Determine your modified adjusted gross income. If you received income from several sources, your Social Security benefits won’t be taxed if your modified adjusted gross income is more than the base amount for your filing status. Keep in mind that this amount varies depending on your filing status.

4- Calculate your taxable benefit on Form 1040A. The easiest way to determine whether you need to report Social Security benefits as income is to use a tax software program. You can also follow the instructions in the Form 1040 Instruction booklet.

5- Computing amount of benefits that are taxable. You can crunch the numbers fairly easily to determine whether some of your benefits will be taxable: Add one-half of the total Social Security benefits received to all of your other income, including tax-exempt interest and other exclusions from income.

Compare this amount with the base amount for your filing status. If the total is more than the base amount, some of your Social Security benefits may be taxable.

6- Understand the base amounts. The 2011 base amounts, according to the IRS, are as follows: $32,000 for married couples filing jointly; $25,000 for single, head of household, qualifying widow/widower with a dependent child, or married individuals filing separately who did not live with their spouse at any time during the year; and $0 for married persons filing separately who lived together during the year.

7- Review IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits. You can find more specific details about taxable Social Security benefits including deductions related to your benefits in Publication 915 from the IRS.

Tags: Social Security benefits
Previous Post

Medical and Dental Expenses Explained

Next Post

The Child Tax Credit Explained

Related Posts

Close up of lower left corner of Internal Revenue Service form 1099-MISC

A Really Simple Explanation of The IRS 1099 Form 

by Lynnette Khalfani-Cox, The Money Coach

As tax season approaches, many individuals and businesses gather their tax documents to file their tax returns. One of the necessary forms that individuals who earn income from non-employment sources need to file is the 1099 form. The 1099 form reports the amount of money an individual or business received...

Elderly Black American Man, African Person Working From Home

Why Do I Owe Taxes? I Am On Social Security

by Lynnette Khalfani-Cox, The Money Coach

Dear Lynnette, I was very upset yesterday to learn that my husband and I owe taxes ($1,100) for 2022. I am on Social Security and my husband is a supervisor at a motel here in Wyoming. I work part time and claimed zero as did my husband. I had an...

Breaking Down the ‘Penalties’ of Single Tax Filings

by Lynnette Khalfani-Cox, The Money Coach

With the new tax filing deadline looming, I stopped into Black News Channel’s “BNC Live” to discuss the upsides of joint filings and the disadvantages of filing solo. To kick off the segment, I detailed the built-in “penalties” that single individuals face in many aspects of life, including higher taxes,...

tax refund

Making the Most of Your Tax Refund

by Lynnette Khalfani-Cox, The Money Coach

With tax season upon us, millions of Americans are expecting sizable refunds.  But there’s no consensus on the best ways to put that money to work.  I stopped into PIX 11 in New York City to share some tips and strategies for maximizing the extra cash. I kicked off the segment with...

Car tax break tips

Skip the Luxury Car and Other Vehicle Tax Break Tips

by Guest Blogger

When it comes to purchasing your next vehicle, you could be leaving money on the table. The truth is that savings on your next car are not only dependent on special deals offered by the dealership. There are also savings to be had in the form of a tax break. Around...

uber and lyft

Tax Pros and Cons for Uber and Lyft Drivers

by Guest Blogger

While being a driver for Uber or Lyft is a great way to earn extra income, it can also come with many tax benefits and disadvantages. Getting an understanding of what can help you at tax time is essential so that you do not owe Uncle Sam more than what...

GOP Tax Plan Hurts The Middle Class

5 Horrible Things About the GOP Tax Plan

by Lynnette Khalfani-Cox, The Money Coach

President Donald Trump and the Republican Party are trying to rush a massive tax “reform” plan through Congress with as little as possible public hearings on the matter. It’s little wonder that the GOP doesn’t want too much scrutiny into this misguided, unfair tax proposal, because this tax plan –...

Load More

Popular Posts

  • Car repair

    What to Do If You Can’t Afford a Car Repair Bill

    1379 shares
    Share 552 Tweet 345
  • What to Do if Your Spouse Stole Money From You

    1170 shares
    Share 468 Tweet 293
  • What to Do If You Can’t Afford to Leave Your Spouse

    1107 shares
    Share 443 Tweet 277
  • Here’s Why I Pay My Kids For Good Grades (And Maybe You Should Too)

    1012 shares
    Share 404 Tweet 253
  • What Do All Those Strange Codes In My Credit Report Mean?

    816 shares
    Share 326 Tweet 204
  • Do This Now If Your Wages Were Not Reported

    747 shares
    Share 298 Tweet 187
  • How to Find Out if a Debt Collector is Licensed to Collect Your Debt

    727 shares
    Share 291 Tweet 182

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2023 TheMoneyCoach.net, LLC. All Rights Reserved.

RSS / Sitemap /Submit an Article / Privacy Policy / LynnetteKhalfaniCox.com

No Result
View All Result
  • Books
  • Categories
  • Contact Lynnette
  • Get Coaching
  • Hire Lynnette
  • Money Coach University™
  • The Money Coach Recommends™
  • Home
  • Subscribe to Newsletter
  • QR Code

©2009-2021 TheMoneyCoach.net, LLC. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist