If you received Social Security benefits
in 2009, you need to know whether or not these benefits
are taxable. Here are six facts the Internal Revenue
Service wants you to know about Social Security benefits
so you can determine whether or not they are taxable
to you.
1. How
much - if any - of your Social Security benefits are
taxable depends on your total income and marital status.
2. Generally,
if Social Security benefits were your only income
for 2009, your benefits are not taxable and you probably
do not need to file a federal income tax return.
3. If
you received income from other sources, your benefits
will not be taxed unless your modified adjusted gross
income is more than the base amount for your filing
status.
4. Your
taxable benefits and modified adjusted gross income
are figured on a worksheet in the Form 1040A or Form
1040 Instruction booklet.
5. You
can do the following quick computation to determine
whether some of your benefits may be taxable:
•
First, add one-half of the total Social Security
benefits you received to all your other income,
including any tax exempt interest and other exclusions
from income.
•
Then, compare this total to the base amount for
your filing status. If the total is more than your
base amount, some of your benefits may be taxable.
6. The
2009 base amounts are:
•
$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 spouses at any time during the year.
•
$0 for married persons filing separately who lived
together during the year.
Contact our office for additional information
on the taxability of Social Security benefits.
