Social security taxable?

Forum|Forum|1 year ago
June 26, 2024
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I am married and retired. We have about $30k in annual interest/dividends. I plan to start collecting Social security in January 2025 and my monthly benefit is about $4k per month. How much of my social security will be taxable in 2025?

Ask the Experts - Retirement II - June 2024

Gabriella_EA

In 2025, you can expect up to 85% of your Social Security benefits to be taxable, based on the following assumptions and figures:

You mentioned being married; I am assuming you're planning to file jointly.
You mentioned about $30k in interest and dividends. I am assuming aside from the Social Security income of about $48k for the year that you will have no other income.

To calculate how much of your Social Security will be taxable, you have to add half of your Social Security benefits to all your other income. If this figure is above $44,000 for 2025, then up to 85% of your Social Security benefits will be taxable.

If you'd like to read more about this, you can check out brief IRS guidance here.

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