Should I take Social Security? How will it affect our taxes?

So this is a question of if the Social Security benefits are taxable and to what extend they are .  If you file a joint tax return, your combined income will be more than $44,000 based upon your fact pattern.  The taxability of Social Security benefits when filing a joint return would be:

• Between $32,000 and $44,000, you may have to pay income tax on up to 50% of your benefits.
• More than $44,000, up to 85% of your benefits may be taxable.

With your husband's income alone being over $50,000, 85% of your Social Security benefits, if you choose to take them will be taxable.  Most states do not tax Social Security benefits.  The States that do tax Social Security benefits are re Colorado, Connecticut, Kansas, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont.

So, with 85% of the Social Security taxes being taxable, you would owe income taxes on your benefits.  So, it would impact your overall tax picture.   Keep in mind though that decision to take Social Security benefits is not just a tax matter.  It has to be considered in concert with your overall household finances.  

Thanks again for the question @lkrpbhouse 

All the best,

Marc 

Employee Tax Expert

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