Dear Editor:
People who receive Social Security retirement benefits should be aware that they may have to pay taxes on some of their benefits if their total income is above average. “About eight million people pay taxes on their Social Security benefits,” stated Yvonne Bryant, Social Security manager in Jersey City.
However, only the higher income beneficiaries — about 20 percent of the total number of beneficiaries — are included in that number, Ms. Bryant noted.
Couples whose combined income is between $32,000 and $44,000 and individuals with income between $25,000 and $34,000 may have to pay federal income tax on up to 50 percent of their benefits. Couples whose combined income exceeds $44,000 and individuals whose income is more than $34,000 may have to pay taxes on up to 85 percent of their benefits. For those whose income is below these levels, Social Security benefits are not taxed.
To figure if taxes are owed, income is defined as adjusted gross income as reported on Form 1040, plus one-half of the total Social Security benefits received for the year, plus non-taxable interest.
The taxes are due along with any other taxes that have to be paid when filing their federal tax return. Retirees may elect to have their taxes automatically withheld by completing a Form W4-V.
“Be sure to check Form 1099 that you receive from Social Security showing how much you received in benefits last year,” Ms. Bryant stated.
Dave Ryder
Social Security, Jersey City