You will generally pay tax on Social Security benefits if the amount of your "preliminary adjusted gross income" exceeds $25,000 for a single person and $34,000 for a married couple filing a joint return. Preliminary adjusted gross income is earnings, pension income, dividends, and taxable interest from investments, plus interest on tax-exempt bonds, plus 50% of Social Security benefits. The income thresholds that trigger taxation do not adjust each year for inflation. Income above these amounts will determine the amount on which you may be taxed.
For more information related to retirement earnings, you may want to go online to the IRS Web site at www.irs.gov/. You will find additional information and downloadable publications which provide detailed information on types of retirement income, including Social Security.
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