I am 64 years old and planning to retire at 65, which is my full retirement age (FRA). Once I begin collecting Social Security benefits, will those benefits be taxable? If so, to what extent?
Social Security benefits may be subject to tax, depending on your combined income for a given year. Combined income equals the sum of adjusted gross income, tax-exempt interest, and one-half of SS benefits. The percentage of tax is based on this total combined income.
Up to 50% of SS benefits may be taxable if combined income exceeds:
- $25,000 if filing as an individual
- $32,000 if married, filing jointly
- $34,000 if filing as an individual
- $44,000 if married, filing jointly