Do You Need To Pay Tax On Your Social Security Benefits?

Shutterstock At the end of last year, nearly 67 million people collected a Social Security check. The majority of those beneficiaries (47 million) were over the age of 65. Each year, many seniors grapple with whether any or all of those benefits are taxable. Here’s what you need to know. Social Security benefits are designed to supplement income in retirement (and provide certain benefits for the disabled, spouses and dependents). Typically, benefits work out to about 40% of pre-retirement income. However, the actual amount received can vary depending on your lifetime earnings. As of December 2017, the average monthly check for retired workers, excluding spouses and dependents, totaled $1,404.15, or $16,489.80 per year. If Social Security benefits were 100% taxable, that amount would put you over the filing threshold for the 2017 tax year (that’s the return you’re filing now). That’s because the filing threshold for single taxpayers over the age of 65 is…

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