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Chapter 6: Paying Taxes on Social Security Benefits

Chapter 5: Social Security Annual Earnings Test

Federal Taxes

You will pay taxes on only 85% of your Social Security benefits, based on IRS rules if you:

  • File a federal tax return as an “individual” and your combined income is
    • Between $25,000-$34,000—you may have to pay income tax on up to 50% of your benefits.
    • More than $34,000—up to 85% of your benefits are taxable.
  • File a joint return, and you and your spouse have a combined income that is
    • Between $32,000-$44,000—you may have to pay income tax on up to 50% of your benefits
    • More than $44,000—up to 85% of your benefits are taxable

State Taxes

Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont, and West Virginia charge state income tax on Social Security benefits.

Chapter 7: My Benefits