Social Security benefits are taxed depending on your total income from all sources. Under current tax regulations, when your income from other sources (adjusted gross income plus nontaxable interest) and one-half of Social Security benefits exceeds $32,000 as a couple, some of the Social Security benefits become subject to taxation. If income received is between $32,000 and $44,000, you will pay income tax on as much as half the amount of Social Security benefits received. If you have more than $44,000 of income, as much as 85% of the Social Security benefits received may be taxable. See IRS Publication 915 at www.irs.gov for instructions to assist with this calculation. We would like your feedback on this Personal Finance Frequently Asked Question.

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