Ask the Experts: Taxing Social Security Benefits

Q. I am 63 years old and retired. I'm considering taking Social Security early. Will my benefits be taxable if I file jointly with my husband, who receives income from his consulting work?

A. Some people who receive Social Security payments have to pay federal taxes on their benefits. If you and your husband file a joint tax return, you may have to pay taxes on up to 50 percent of your Social Security benefits, if your combined income is between $32,000 and $44,000.

If your combined income is over $44,000, you may have to pay taxes on up to 85 percent of your Social Security benefits.  The term "combined income" is defined as the sum of your adjusted gross income, nontaxable interest and half of your Social Security benefits.

To read more about taxes and retirement benefits, see Social Security Publication No. 05-10035, "Retirement Benefits," available online at  http://www.ssa.gov/pubs/10035.html.

Source: Stan Hinden