Tracy’s Tax Tips #7: Taxable Social Security Benefits

So here’s a tax-time zinger: Many people don’t realize that their Social Security benefits are taxable.

I’m Tracy Byrnes with the FOX Business Network, here with another of Tracy’s Tax Tips:

All Social Security recipients should receive Form SSA-1099, that’s from the Social Security Administration, and it shows the total amount of their benefits. ?And the form helps determine if your benefits are taxable, because it depends on a bunch of things like your marital status and your total income.

Now generally, if Social Security benefits were your only income for 2011, your benefits are NOT taxable and you probably do not even need to file a tax return. ?Still, check with your preparer. ?If you did have other income, you can do a quickly little calculation to determine if you have a tax bill. ?Add 1/2 of your total Social Security benefits to all your other taxable income. ?If that amount is great than $32,000 for married couples, or $25,000 for singles or head of household, your benefits may be taxable.

Check out IRS Publication 915, “Social Security and Equivalent Railroad Benefits” irs.gov for more.

I’m Tracy Byrnes, FOX News Radio.