Social Security benefits are not taxable if they’re your only income, and you won’t need to file a tax return. However, if you have additional income, the IRS may tax up to 85% of your Social Security benefits, depending on your overall income level. This is determined by a complex “provisional income” calculation. Understanding how this works and managing your income sources can reduce or avoid unnecessary taxation on your Social Security. Need help navigating this? Contact Dr. Friday’s office to ensure you’re maximizing your benefits without the tax surprise.
Transcript:
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
So you hear all the time, Social Security is not taxable. And that is true. Taxable on Social Security, if that’s all you have, you’re not even required to file a tax return. If you have less than $10,000 or thereabouts of other income and Social Security, most likely going to be a zero situation. But the provisional tax code is tricky. And to understand that, they can tax, they can add into your income up to 85% of what you get from Social Security if you’re not careful. Understanding that and your Irma can put money in your pocket. Call us at 367-0819.
You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.