Once upon a time, your Social Security retirement benefits were free of federal income taxes. Unfortunately, that's not necessarily the case anymore.
Today, it's possible for 50% to 85% of your Social Security retirement benefits to be taxable if your Provisional Income is above certain thresholds. The calculation of your Provisional Income is equal to your Adjusted Gross Income (not including Social Security) + Tax-Free Interest from Municipal Bonds + 1/2 of Your Social Security Benefit.
Once you know your Provisional Income, then look at your filing status to determine how much of your Social Security benefit is taxable.
Single Tax Payers:
Joint Tax Payers:
* The thresholds above are NOT subject to an adjustment for inflation. As a result, to the degree that inflation occurs in our economy, more and more people will be subject to having their Social Security benefits taxed.