Social Security Benefits Worksheet

Up to 85% of social security benefits may be taxable but for many taxpayers none of their benefits are taxable. You should receive a form SSA-1099 every year indicating your annual benefits. Total benefits will be entered on line 20a of the 1040. The taxable portion of this will be on line 20b. How is this calculated?

For most people it goes like this....

Add half your social security benefits to all your other income (including tax-exempt interest). If this totals less than $32,000 for a married couple filing jointly or $25,000 for a single person, then none of your benefits are taxable. There will be no entry on line 20b. If the total is more, between 0% to 85% of the benefits will be taxable and entered on line 20b. The worksheet below would be used to calculate this percentage (normally done now with tax software).