Recently a reader asked:
I would like to know the breaking points for annual income that affects the percentage of social security that is taxable. example…low income only 15% is taxable.
Social Security is normally not taxable unless you earn over a certain amount. This lower amount is called the base amount and depends on your filing status. Single and Head of Household filers have a base of $25,000. Married Filing Jointly has a base of $32,000. If your provisional income (all worldwide income, including tax-exempt income, plus half of Social Security benefits) is lower than the base, you are not taxed on your benefits.
The next tier is at $34,000 for Single and HoH and $44,000 for MFJ. If you earn between the base and the next tier’s limit, then your 50% of your benefits are taxed.
If you earn more than the second tier, then 85% of your Social Security benefits are taxed.