Dear Rusty:  I am past my Social Security full retirement age, and I am still working. I am married and we file our income tax jointly. My husband is 64 and is not working now, but he may, or may not, be able to work in the next year or so. At what point will my Social Security benefits be taxed, if I decide to take them now? Signed: Worried About Taxes 

Dear Worried: Many Social Security recipients are surprised to find that their benefits may be considered taxable by the IRS, so I welcome the opportunity to clarify this topic for you.  

Whether or not your Social Security benefits are taxable depends on your overall combined taxable income for your IRS tax filing status. Taxation of Social Security benefits for a married couple (filing jointly) depends on your combined income as a couple, which is called your “Modified Adjusted Gross Income” (MAGI) by the IRS. Your MAGI consists of your normal Adjusted Gross Income (AGI) on your IRS tax return, plus 50% of the SS benefits you received during the tax year, plus any non-taxable interest you may have had.  

If your MAGI (filing jointly) exceeds $32,000, then 50% of the SS benefits you received during the tax year becomes taxable, but if your MAGI as a couple exceeds $44,000 then up to 85% of your received SS benefits becomes taxable (at your standard IRS tax rate). Note that these tax thresholds are less for those who file their taxes as a single – e.g., for someone whose IRS filing status is “single,” half of their Social Security benefits become part of their taxable income if their personal MAGI is over $25,000, and up to 85% of their SS benefits are taxable if their individual MAGI is over $34,000. 

Another factor often misunderstood is that only a portion of SS benefits are added to your income amount taxed by the IRS. The amount added – somewhere between 50% and 85% of the SS benefits received during the tax year (depending on your MAGI) – becomes taxable income at your normal IRS tax rate.  

So, in your case, if you claim your SS benefits now, and your combined income (your MAGI) exceeds the above levels for a married couple, then a portion (either 50% or up to 85%) of your SS benefits received during the tax year will be included in your income taxable by the IRS. Note, too, that it is possible to have income tax withheld from your Social Security benefits by submitting IRS form W-4V to your local Social Security office. You can download this IRS form at www.irs.gov/pub/irs-pdf/fw4v.pdf.  

Russell Gloor is an Association of Mature American Citizens certified social security advisor. To submit a question, visit amacfoundation.org/programs/social-security-advisoryor email ssadvisor@amacfoundation.org.