Are American Social Security benefits taxed?

[LavenderBlue]

My husband and I are trying to decide if we should continue with a 401K plan or go with a retirement plan that includes a state government pension and social security.

One of the things we need to find out is if social security is taxed when you retire.

[BobT]

Officially the answer is “Maybe”

http://ssa-custhelp.ssa.gov/cgi-bin/ssa.cfg/php/enduser/std_adp.php?p_faqid=493&p_created=975936428&p_sid=mh7D9oxh&p_lva=&p_sp=cF9zcmNoPTEmcF9zb3J0X2J5PSZwX2dyaWRzb3J0PSZwX3Jvd19jbnQ9MTA4JnBfY2F0X2x2bDE9MyZwX2NhdF9sdmwyPSZwX3BhZ2U9MQ**&p_li=

[DrDeth]

SS is partially taxable at the higher brackets. Getting both SS and a retirement is a good idea. Belt AND suspenders.

[Ignatz]

@BobT

Officially the answer is “Maybe”

http://ssa-custhelp.ssa.gov/cgi-bin/ssa.cfg/php/enduser/std_adp.php?p_faqid=493&p_created=975936428&p_sid=mh7D9oxh&p_lva=&p_sp=cF9zcmNoPTEmcF9zb3J0X2J5PSZwX2dyaWRzb3J0PSZwX3Jvd19jbnQ9MTA4JnBfY2F0X2x2bDE9MyZwX2NhdF9sdmwyPSZwX3BhZ2U9MQ**&p_li=

Bob T: Can you define “combined income” for an individual? Is that all my income, including salary, other retirement $, plus SS?

[barbitu8]

@Ignatz

Bob T: Can you define “combined income” for an individual? Is that all my income, including salary, other retirement $, plus SS?

Yes, all taxable income, whether earned or unearned.

… wages, self-employment, interest, dividends and other taxable income that you have to report on your tax return). No one pays taxes on more than 85 percent of his or her Social Security benefits and some pay on a smaller amount, based on these IRS rules: