Are Social Security benefits taxable?

Social Security benefits can be taxable, depending on your income level. If your income is above a certain threshold, a portion of your Social Security benefits may be subject to federal income tax.

The threshold is based on your "combined income," which is your adjusted gross income (AGI) plus any tax-exempt interest income plus half of your Social Security benefits. Here are the current threshold levels:

• If your combined income is below $25,000 (for single filers) or $32,000 (for married filing jointly), your Social Security benefits are not taxable.

• If your combined income is between $25,000 and $34,000 (for single filers) or $32,000 and $44,000 (for married filing jointly), up to 50% of your Social Security benefits may be taxable.

• If your combined income is above $34,000 (for single filers) or $44,000 (for married filing jointly), up to 85% of your Social Security benefits may be taxable.

Note that some states may also tax Social Security benefits. However, there are some states that do not tax Social Security benefits at all or only tax them in certain circumstances. It's best to check with your state's tax department or consult with a tax professional for more information.

If you receive Social Security benefits, you will receive an annual Social Security Benefit Statement (Form SSA-1099) that shows the amount of benefits you received during the year. This form will help you determine if your benefits are taxable and how much you need to report on your tax return.