Taxes are the bane of our existence, and they may be applied to income that were never thought would be taxed. Yes, Social Security is a tax we pay while we are working, depending on your income in retirement, you may pay tax on the Social Security income you receive.

Here is how the potential tax plays out:

For individuals, up to 50% of benefits are taxed on a “combined income” between $25,000 and $34,000.
Up to 85% of benefits are taxed
For individuals with combined income of more than $34,000.
For married filers, a combined income of $32,000 to $44,000 triggers tax on up to 50% of Social Security benefits.
Up to 85% of benefits are taxed for married filers with a combined income of more than $44,000.

For purposes of this calculation, “combined income” is considered to be your adjusted gross income plus your nontaxable interest and half of your Social Security benefits.

Disclosures:http://www.hechteffect.net/?page_id=31