IRS Reminder: Your Social Security Benefits May Be Taxable

The Internal Revenue Service recently reminded taxpayers of something many people still find surprising: Social Security benefits can be taxable, depending on your total income.

Here’s the simple breakdown 👇

When are Social Security benefits taxable?

Your benefits may be subject to federal income tax if you have other income, such as:

💰 Wages or self-employment income

💰 Retirement distributions (401(k), IRA, pensions)

💰 Interest or dividends

💰 Other taxable income sources

The IRS looks at your combined income, which includes:

• Your adjusted gross income (AGI)

• Nontaxable interest

• ½ of your Social Security benefits

If that total goes over certain thresholds, up to 85% of your Social Security benefits may be taxable.

What this means for you

• Not everyone who receives Social Security pays tax on it

• Many people are caught off guard because no taxes are withheld by default

• Planning ahead can help avoid an unexpected tax bill

  
  

The takeaway

Social Security isn’t automatically tax-free, and understanding how it fits into your overall income matters. A little awareness now can save stress (and money) later.

If you’re retired, semi-retired, or planning your income strategy, this is one of those “know before you file” moments that makes a real difference.

For more information visit IRS.GOV and contact us at 239-628-7446 via text for faster support. We offer 10-15 minute complimentary consultations.