Dictionary of Business Terms: social security benefits, taxation of
social security benefits, taxation of
a portion of Social Security benefits is included in taxable income. The percentage included is 50% or 85%, depending on the filing status and the amount of income.
Tier 1 amounts (base amounts) are $32,000 for married joint returns; $25,000 for singles and heads of households. Tier 2 amounts are $44,000 for married joint returns and $34,000 for singles and heads of households. For marrieds who lived together during any part of the year but filed separately, the threshold amount is $0.
