Social Security Benefits May Be Taxable as Income
Social Security benefits may be taxable as income, which comes as a surprise to many a new recipient of benefits. Though some states do not tax benefits (and some do), your Federal tax obligation will always take your Social Security benefits into account to determine if your benefits are taxable. The rules are a little different depending upon your IRS filing status (e.g., single or married-filing jointly), but taxation of benefits should be in the forefront for anyone planning to claim Social Security. Although this article is somewhat specific to California for the State income tax, the rules outlined for Federal taxes on benefits apply nationally. The article, appearing in the Monterey (CA) Herald, is a Q&A discussed by certified public accountant Barry Dolowich describing how Federal taxation of your Social Security benefits works. Click here to read more.