00:00Understanding the tax implications of your Social Security benefits is crucial for financial planning.
00:06Generally, Social Security income is taxable.
00:09This applies to monthly retirement, survivor, and disability benefits from the Social Security Administration.
00:15As well as Tier 1 railroad retirement benefits, however, there are important exceptions.
00:21You are not required to pay federal income taxes on Social Security payments.
00:25If your combined income falls below a specific threshold, additionally, Supplemental Security Income, or SSI payments, which are provided to qualified individuals with limited total income, are not taxable.
00:38Disability payments received due to injuries directly caused by a terrorist attack against the U.S. or its allies, including Social Security Disability Insurance, or SSDI payments, are also tax-exempt.
00:50To determine if your Social Security benefits are taxable, you first need to calculate your provisional income, also known as combined income.
00:58For most seniors, this is the sum of 50% of your Social Security benefits, your modified adjusted gross income, or MAGI, and any tax-exempt interest.
01:08If you file a joint return, both spouses' amounts should be included.
01:13The formula is 50% of Social Security benefits plus modified adjusted gross.
01:18Income tax-exempt interest equals provisional income.
01:22If your provisional income is low enough, none of your Social Security benefits will be taxed.
01:27However, if you have other taxable income, such as distributions from a traditional IRA or pension,
01:33it's likely that a portion of your Social Security benefits will be subject to federal income tax.
01:39Depending on your provisional income level, either up to 50% or up to 85% of your Social Security benefits could be taxable.
01:47These provisional income thresholds are determined by your filing status.
01:51Money expenses.
01:52Money expenses.
01:52Money expenses.
01:52Money expenses.
Comentarios