Social Security benefits are 100% tax-free when your income is low. As your total income goes up, you’ll pay federal income tax on a portion of the benefits while the rest of your Social Security income remains tax-free. This taxable portion goes up as your income rises, but it will never exceed 85%. Even if your annual income is $1 million, at least 15% of your Social Security benefits will stay tax-free.
Taxation of Social Security Benefits
The IRS has a somewhat complex formula to determine how much of your Social Security is taxable and how much of it is tax-free. The formula first calculates a combined income that consists of half of your benefit plus your other income such as withdrawals from your retirement accounts, interest, dividends, and short-term and long-term capital gains. It also adds any nontaxable interest from muni bonds.
This income is then reduced by a number of above-the-line deductions such as deductible contributions to Traditional IRAs, SEP-IRAs, SIMPLE IRAs, HSAs, deductible self-employment tax, and self-employment health insurance. Finally, this provisional income goes through some thresholds based on your tax filing status (Married Filing Jointly or Single/Head of Household). All of these steps are in Worksheet 1 in IRS Publication 915.
Calculator
You can go through the 19 steps in the worksheet to calculate the amount of Social Security benefits that will be taxable but the worksheet isn’t the easiest to use. I made an online calculator that helps you calculate it much more quickly. It only needs three numbers plus your tax filing status. You’ll have your answer with the click of a button.
The calculator works for all types of Social Security benefits. It doesn’t matter whether you’re receiving Social Security retirement benefits, disability benefits, spousal benefits, or survivor benefits as a widow or widower. It doesn’t matter whether you’re receiving your full Social Security benefits or you’re getting it reduced because you claimed early or you’re getting the maximum benefit because you waited until age 70.
The calculator works for both a single person and a married couple filing a joint return. If you’re married and both of you are receiving Social Security, include both your own benefit and your spouse’s benefit and both your income and your spouse’s income.
If you’re on Medicare, the Social Security Administration automatically deducts the Medicare premium from your Social Security benefits. You need to use the “gross” Social Security benefits before deducting the Medicare premium and it should be an annual number, not monthly. You can find this number on your Social Security benefit statement or your Form SSA-1099.
It only applies to federal taxes though. State taxes don’t necessarily follow the same rules as the federal government. Different states have different rules on taxing Social Security benefits. Some states don’t tax Social Security benefits.
Taxable Does Not Necessarily Mean Paying Taxes
The calculator shows the taxable portion of your Social Security benefits. Having a taxable amount only means it will be included as a part of your gross income on your tax return. It does not necessarily mean you’ll pay taxes.
Your gross income is still subject to your normal standard or itemized deductions to arrive at your taxable income. You still pay in your normal tax brackets of 10%, 12%, 22%, etc. on the taxable income. 50% or 85% of your benefits being taxable doesn’t mean you’ll lose 50% or 85% of your Social Security to taxes. The actual tax on your benefits is much less. The tax may actually be zero after applying deductions.
When more than 15% of your Social Security is tax-free, additional income outside Social Security will make more of your Social Security benefits taxable, lowering that number toward 15%. Some people call this a tax torpedo but it’s a misleading term. It gives you the impression that Social Security is taxed more heavily than other income, which is not true. You actually still pay lower taxes than other people with the same income. See why that’s the case in An Unusually High Marginal Tax Rate Means Paying Lower Taxes.
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KD says
Harry, even though a portion of social security may be taxable, one may not actually end up with any “taxable income” due to standard deduction. Is my understanding correct?
Harry Sit says
That’s correct. For example, a married couple filing jointly, both over the age of 65, with $25k Social Security benefits plus $25k other income will see a portion of their Social Security benefits being taxable. When the taxable portion ($2,750) is added to their $25k other income, it still falls under their standard deduction of $28,700 in 2022.
joe oliver says
“When the taxable portion ($2,750) is added to their $25k other income, it still falls under their standard deduction of $28,700 in 2022”. Incorrect amount ???
Standard deduction for 2022, married filing jointly is $25,900 and not $28,700.
thanks
Harry Sit says
People age 65 or older have a higher standard deduction.
Laurel says
When calculating my SS benefits do I still count the $177.10 that’s being taken out monthly for my Medicare premium, or just total what I actually get deposited to my checking account? Thanks
Harry Sit says
You still count the Medicare premium. Deducting the Medicare premium from the Social Security benefits is only for administrative convenience. It doesn’t reduce your Social Security benefits.
Steve says
Thanks Harry – you’re a generous genius.
janice kathleen powell says
i have to pay on half my ss benefits is there a way to have ss take out some taxes
Harry Sit says
You may choose to withhold 7%, 10%, 12%, or 22% of your monthly payment. Call Social Security or submit a form.
https://www.ssa.gov/manage-benefits/request-withhold-taxes
Tom W says
I recommend the online calculator at https://www.calcxml.com/calculators/how-much-of-my-social-security-benefit-may-be-taxed?
It’s updated annually, handles simple or more complex income scenarios and has been spot on for me over the last 4 years.
Harry Sit says
My calculator gives the same result, and it’s easier to use. It doesn’t require annual updates.
Rose says
Thanks for this. I created a spreadsheet but like the IRS form it’s got too many steps. I was double checking my numbers and am so glad they were the same. Your calculator is much better.
thanks again
I tried the Calcxml calculator. It shows taxable SS and then taxes due. The taxable SS amt must be plugged into the 1040or other form before you know what your actual taxes will be. If taxable SS 16k, may not owe anything after std ded is taken.
Rose says
I tried the Calcxml calculator. It shows taxable SS and then taxes due. The taxable SS amt must be plugged into the 1040or other form before you know what your actual taxes will be. If taxable SS 16k, may not owe anything after std ded is taken.
Barbara says
I appreciate all the information you have made available to us retirees. Hubby and I have been drawing social security for less than a year but are wanting to also draw funds from our traditional IRA next year. Using your calculator with current numbers, none of our social security is taxable. Would I insert the amount of IRA withdrawals into other income to calculate how much social security would be taxable next year?
Harry Sit says
Yes, withdrawals from a traditional IRA will be part of your other income outside Social Security.
Brian Raymer says
I have a question regarding your online calculator for estimating the percentage of your social security benefits will be subject to federal income tax. I will be collecting pension benefits, but what else do I include as “Other Income”? Do I include RMDs or any other income I may cash out from any investments or bank accounts? I like the simplicity of your calculator but is it close to being as accurate as the IRS worksheet?
Harry Sit says
Include RMD, interest, dividend, and realized capital gains. Don’t include withdrawals of principal or basis from non-IRA accounts or withdrawals from Roth accounts.
Terry Flick says
I come up with a different answer using your calculator when I input information from Example 1 on page 7 of IRS Publication 915 (2021).
Page 6 of Publication 915 says:
Maximum taxable part. Generally, up to 50% of your benefits will be taxable. However, up to 85% of your benefits can be taxable if either of the following situations applies to you.
• The total of one-half of your benefits and all your other income is more than $34,000
($44,000 if you are married filing jointly).
• You are married filing separately and lived with your spouse at any time during 2021.
Example 1 of the IRS Pub says $2,990 of social security benefits would be taxable, whereas inputting the information into your calculator shows $3,490 would be taxable.
Example 1. George White is single and files Form 1040 for 2021. In addition to receiving social security payments, he received a fully taxable pension of $18,600, wages from a part-time job of $9,400, and taxable interest income of $990, for a total of $28,990. He received a Form SSA-1099 in January 2022 that shows his net social security benefits of $5,980 in box 5.
To figure his taxable benefits, George completes Worksheet 1, shown below. On line 6a of his Form 1040, George enters his net benefits of $5,980. On line 6b, he enters his taxable benefits of $2,990.
The Filled-in Worksheet 1 shows the calculation to arrive at the taxable benefit of $2,990. I input the numbers from Example 1 into the IRS taxable benefit calculator and a few other online calculators and they all showed $2,990 as the taxable benefit.
Here’s how I think of the calculation (using a single filing status from Example 1):
(1) Provisional income ($31,980) minus lower threshold ($25,000) times 50% = $3,490
Provisional income ($31,980) minus upper threshold ($34,000) times 35% = -0-
Total = $3,490
(2) Maximum social security taxed ($5,980 times 50%) = $2,990
Taxable social security benefit is the lesser of (1) or (2).
It appears your calculation is using $5,980 times 85% in (2) = $5,083
In this case, the lesser of (1) or (2) would be $3,490 (the answer given by your calculator).
I feel the IRS Worksheet does not do a good job of walking you through the calculation.
Harry Sit says
Thank you for double-checking. I fixed the error.
Keven says
I received $10,759 from Social Security in 2022. My spouse will make around $40,000.
Will my Social Security be taxed?
Grateful for your service
Thank you!
Kate says
Hi Harry,
I am not sure I understand your answer to Laurel. When I look at my SSA 1099 it shows “Medicare Part B premiums deducted from your benefits”.
Part B is supposed to be tax deductible according to the IRS. It doesn’t seem like it is because Box 5 includes Part B and that is what is used in the calculation. Can you explain? Thanks.
Harry Sit says
To use simple numbers, suppose your Social Security benefit is $2,000 per month and you have $200/month Medicare Part B premium deducted from your benefit. You receive net $1,800 per month deposited into your bank account. When you calculate how much of your Social Security benefit is taxable, use the $2,000/month number and multiply that by the number of months to get the annual Social Security benefits. In other words, add the Medicare Part B premium deducted from your Social Security to your net deposit. That’s your true Social Security benefit.
Unless you’re self-employed, Medicare Part B premium is tax deductible only as a part of medical expenses. Deducting medical expenses requires itemizing deductions and having medical expenses over 7.5% of AGI. Most people can’t deduct their Medicare Part B premium.
Kate says
Thank you . As I worked on my taxes today I realized that it’s not likely that someone could actually deduct Part B even though technically it’s possible.
Your Social Security calculator is brilliant. I worked through the long IRS worksheet but your calculator is so much faster. I used it to do “what ifs” about accepting more income.
I still find it hard to accept that the true Social Security benefit includes Part B but I accept the formula as written. If someone never retired, collected Social Security and was covered under a creditable group health plan at work, Part B would not be deducted.
Bill says
Harry,
Your SSA taxable benefits calculator has been very timely as I contemplate retirement in the next 18 months and look at different non-SSA income scenarios over our early retirement years as my spouse takes early (age 62) SSA benefits and I wait until 70. Several questions for me as I continue to use this to model out “what ifs” during this period:
1) I assume the “tax filing status” choice relates to how large the standard exemption will be. If so, will your calculator be updated as the exemption amount changes each year?
2) Does it assume that each spouse of a joint filing status is 65+, thus an additional exemption amount?
Thanks
Harry Sit says
This calculator only calculates how much of the Social Security benefits is included in the gross income for taxes. Applying the standard deduction and the tax brackets are the next steps to calculate how much taxes you’ll pay. That’s beyond the scope of this calculator.
To use the numbers shown in the calculator example — married filing jointly, $30,000 Social Security benefits, $30,000 interest, dividend, and IRA withdrawals, $3,000 above-the-line deductions — the calculator shows $5,000 of the $30,000 Social Security is taxable. That’s all it does. You take the $5,000 number to calculate the AGI: $5,000 + $30,000 – $3,000 = $32,000. Then you apply the standard or itemized deduction, the special rates on qualified dividends and long-term capital gains, and the tax brackets, etc.
Ron B. says
Harry: How does one calculate SS tax if married filing separately?
Harry Sit says
If the person lived apart from their spouse all year, treat as Single. If the person lived with their spouse for at least one day in the year, use the special procedure in Worksheet 1 in IRS Publication 915, which results in 85% taxable if their other income minus above-the-line deductions is at least 1/2 of the Social Security benefits.
ujean says
hello, i need help with form 915 right now it says that a portion of my social security is taxable but even with the taxable Portion my taxable income is zero. i would like to know that even with the nontaxable income should i worry about doing the lump sum method
Harry Sit says
The purpose of the lump sum method is to lower your taxes by spreading the payment into different years. You don’t need it when your taxable income is already zero without using the lump sum method.
Richard says
Thank you very much for your calculator. I used the Social Security Benefits Worksheet in the 1040SR instructions. It took some time and I wasn’t confident in my results. I used your calculator and it confirmed what I had come up with. Thank you.
Charlene Wilder says
When calculating AGI for the purpose of social security taxation, will I be able to first reduce my RMD by the QCD (qualified charitable deduction) that is paid dirctly from the IRA to the 501-3C?
Harry Sit says
Yes. QCD counts against your RMD but it’s not included in your AGI.
Jenn says
I am using the calculator to determine the highest amount she can earn at her job while getting social security benefits for this year. If I am coming up with 3700 taxable income, how do I figure out how much of that she will pay back? In other words, what is the tax rate on that amount? And am I missing where standard deduction comes into play in the calculator? OR is there another calculator to do what I am trying to do, this early in the year?
Thank you
Harry Sit says
This calculator only calculates how much of the Social Security benefits will count as income. It doesn’t calculate how much tax you will pay on such income. The 2023 standard deduction and tax brackets are in 2023 Tax Brackets, Standard Deduction, Capital Gains, etc.. Add the taxable benefits to other income and compare the total with the standard deduction.
Pat says
My spouse & I will both be turning 70 in 2024, so we will begin taking social security. I know that 85% will be taxable & that we can specify up to 22% be withheld for federal tax. So how is this done? Is only 85% of the monthly check taxed at 22% or is the entire monthly amount taxed? I keep a spreadsheet of quarterly income, (including dividends, interest, retirement distributions & pensions) & taxes paid, so as not to get an underpayment penalty, & so that I can tell how much of my traditional IRA can be converted to a Roth without affecting Medicare (IRMAA). I try to pre-pay the taxes on the IRA conversion by having extra taxes withheld from pensions & retirement distribution.
Harry Sit says
Your choice of 7%, 10%, 12%, or 22% of each payment can be withheld without regard to how much of your benefits ultimately ends up being taxable or at what tax bracket. If you withhold too little or too much from Social Security, withhold more or less elsewhere or adjust estimated taxes.
Aldo says
Hello. I’m over 65, and in 2023 received total benefits in the amount of 20,050.00 dollars.
I have no other income! Do I need to file for Income Tax Return? Thanks
Harry Sit says
The calculator shows 100% of the Social Security benefits is tax free. With no other income, your AGI is $0. You’re not required to file an income tax return but filing one with $0 income is quite easy anyway. Your tax return tells the IRS where to find you. When the government sent payments during the pandemic, people who didn’t file a tax return had a harder time receiving the payments.
B Mays says
Thanks for all the advice but–husband just started SS and I am still working full time. For health reasons he had to retire at 64. I understand the 85% using the calculator. But I still don’t know how to figure the taxes he needs to take out of his check! We don’t want to owe at end of year. I know the form said for him to choose 7%, 12% and more. Please advise! I do our taxes so I’m the only advisor we have!
Harry Sit says
The Dinkytown 1040 Calculator helps you estimate your total tax. Compare it with how much you’re already paying through payroll. Then you can either withhold the difference through Social Security or increase withholding through your payroll.
https://www.dinkytown.net/java/1040-tax-calculator.html
Bill Bell says
Harry, Your calculator has worked perfect for me. Thank you! I have been having a problem predicting my simple taxes in the last couple of years since I retired. Even a paid service got my 2023 wrong by $500 too little. I found your calculator and put in my numbers and then took those results into my spreadsheet and wow, PERFECT! Now my only concern is that I can’t loose this tool in the coming years. Please keep up the great work.
E. King says
I totally agree Bill. I found this calculator in 2022 and it has been spot-on for me the last two years. I plug in different numbers for “Other Income” to see how much of an IRA distribution I can take. It works great. I think people are overthinking things on this.
I “bookmarked” this page on my computer, which makes it easy to find each year.
Good Luck!
Gigi says
I am so confused by the 85% tax on Social Security depending on income. Will it tax only 85% of the Social Security or is the 85% tax on gross along with Social?
I am working full time and will earn appx $40,000.00 for 2025 along with Social Security income of around $19,000.00. I want to have taxes withheld but have no idea with % to have withheld??
Help Please.
Harry Sit says
Add to the gross income the amount that the calculator says is taxable. The actual tax depends on your filing status and deductions. For a 65-year-old filing single with your level of income, the tax is more like 10% of the Social Security benefits.
Gigi says
I am 67 and plan on continuing working full time with a gross income for 2024 of about $40,000.00 and drawing social security which will be about another )19,200.00
I understand that this will place me into the category of the 85% taxable bracket as I will be filing as single.
I’m confused about what amount is to be taxed. Is it 85% if the social security?
Also I would like to have taxes withheld from social security but again what % is advisable to have held?
Help😁
Harry Sit says
85% of the social security adds to your taxable income. The actual tax is about 10% of the social security.
Stan Eschmann says
Why not allow one to enter the required amounts instead of scrolling up and down. The scrolling is just too slow. Takes too long.
Kara says
What device are you using ? Lots of scrolling??? I’m using my Samsung phone. It’s three inputs and I moved my finger on the screen a half inch to the calculate button. Nothing could be easier. Fantastic calculator. Beats an IRS worksheet any day.
Connie says
Thank you for your complete explanation of how much tax you may actually pay on SS. All I could find, even on the IRS website, was that your SS may be taxed up to blah blah percent if your “combined” income (1/2 of our SS plus 401k RMDs for us) is between $32,000-$44,000, (ours was $34,000), and when I did my return on efile, it came out that we owed nothing and got a refund of all of our RMD taxes paid. I wanted to accept that but nowhere could I find an explanation of it as there was no mention of the standard deduction. Thank you for carrying this explanation further!!
Jim Scoppe says
I retired at 62 in 2011, moved from NJ to NV (that has no state income tax), and started collecting SS at that time. My wife is 11 years younger than I, so she started collecting SS last year, the same year I had to take RMD from my traditional IRA. I have always filed jointly. Even though our AGI was well below our standard deduction and my tax liability was 0, I did as you advised and filed every year since I retired. I had no idea til I spoke with a friend that some of our SS would be taxable, especially now since both of us are collecting SS and I am taking RMD. Your calculator is a great help in figuring out the maximum amount of RMD to withdraw each year by 12/31 without exceeding the amount that would make our combined SS annual payments taxable.
Robert V benson says
im actual ly confused.i used the social security calculator ans jist don’t understand the figures on the form,plus at the bottom it gives estimated tax due is this the number i put on my 1040 and compare it with my actual tax withheld for the year. and that is what i owe.please answer.
Harry Sit says
As the title says, this calculates how much of your Social Security is taxable. Taxable means “counts as income on the tax form.” How much it counts as income on the tax form depends on the size of your Social Security and your other income in a year. The calculator gives you that number. It isn’t the amount of tax you pay on such income. After the calculator says how much of your Social Security counts as income on the tax form, you add it to your other income, minus your standard (or itemized) deduction, and then you apply the tax brackets (10%, 12%, 22%, …) to come up with the tax you pay and compare with your tax withholding and estimated tax payments.
Dr. Stan De Loach says
Thank you, Sir, for this EXCELLENT tool. FREETAXUSA (an online FREE tax filing service recommended by the IRS) gave your result exactly. THANK YOU.
George says
I am confused about taxable amount of total benefits. Both of our ss totals 39300 and pension and interest total 67000, so I calculate about 33400 of ss is taxable since it is 85%. Some articles say to deduct 44000 since this is the theshold amount from total of ss and other income to get to amount taxable. I used your calculator method and it shows around 33400 should be added to all other income, then minus standard deduction to get AGI. Is this correct? Please reply. Thank you.
Harry Sit says
When the calculator says $33,400 is taxable, it means you add $33,400 to your $67,000 pension and interest and subtract any above-the-line deductions to get your AGI. Suppose you don’t have any above-the-line deductions (IRA deduction, HSA contributions, etc.), your AGI is $100,400. If you only want to know your AGI, that’s the end of it.
If you’d like to go one step further to calculate how much tax you’ll pay out of that AGI, then you take out the standard or itemized deductions and apply the tax brackets. Suppose both of you are over 65 and you take the standard deduction, the standard deduction is $32,300 in 2024. You apply the tax brackets on $100,400 – $32,300 = $68,100. The first $23,200 out of the $68,100 is taxed at 10%. That’s $2,320. The remaining $44,900 is taxed at 12%. That’s $5,388. The total federal income tax is $2,320 + $5,388 = $7,708, which is 7.7% of your AGI.
Emily says
Hello and thank you for this very useful information. I need your guidance please.
Received in 2023 a lump sum for SSDI back pay. Includes backpay from 6 different years, including 2023 regular benefits received. (2015, 2016, 2017, 2018, partial 2019)
Legal fees were also withheld from my lump sum payment, and are listed in the 2023 SSA-1099 within the breakdown of ‘what is included’ along with the Medicare premiums. Those legal fees are substantial (close to $30K)
1) Where do I actually account for the legal fee deduction? I have read it is an ‘above the line deduction’ as long as is not greater than any one year’s taxable income. Is this true? And where do we note on returns the reduction?
2) The 2023 SSA-1099 did not provide a breakdown of what benefit amount came from what year. It only stipulated an amount for 2019. Then it stated the rest (nearly 100K) as ‘for all other years’ – this includes 2023. So it is very confusing and difficult to perform the lump sum election model. I did my very best to manually calculate each individual year SSDI benefit with my award letters, but was just about $37 off. So when and IF I received a corrected 1099 from SSA, I assume the grand total box 3 and 5 and what really matter and shouldn’t change? I am really trying to avoid any kind of extension.
Thanks for your help.
Harry Sit says
Google says the legal fees aren’t deductible. You should contact Social Security or your attorney to get the benefits breakdown for each year. The number on your SSA-1099 should match the actual cash you received plus the Medicare premiums deducted, any tax withheld, and legal fees.
Grace says
Thank you for the calculator as it is very helpful.
My question is: After a certain age – full retirement – my understanding is you no longer have a earnings threshold against SSI?
Harry Sit says
They’re two totally different things. First of all, Social Security isn’t SSI. SSI is Supplemental Security Income, which is a separate program from the “regular” Social Security as we’re talking about here. Using the right terminology will help you google for more information. Second, the earnings test is only against one’s W-2 income and self-employment income while receiving Social Security. Pensions, IRA withdrawals, interest, and dividends don’t count. Spouse’s income doesn’t count. If the W-2 and self-employment income exceeds a certain threshold before a certain age, Social Security will “bank” part of your benefits and release them in future years. Please use Social Security’s earnings test calculator to see how the earnings test affects you.
Whatever you have left after such reduction by the earnings test, a part of it still may be taxable, i.e. counts as gross income on your tax return. You still need this calculator to see how much is taxable and how much isn’t.
Anna Anske says
I’m turning 65 in December 24, and I will retire in June 25. The portal says if I will get $2727/month for my social security benefit and I have a pension of $500/month. I am so lost to all of this and can someone help me understand how much tax I should be taking out of my check every month? I am so nervous about retiring and this medicare thing is another concern for another day.
Thank you!
Harry Sit says
You don’t need to take out anything for taxes if you’re single and those are your only income.
Anna Anske says
Oh I thought I had to pay either 10, 12, 15, or 20% on 75% of my SS benefit. I just don’t want to end up paying taxes come April of 2026.
Thank you so much for responding.
Harry Sit says
The answer changes when you have other income. What income will you have in 2025 besides taking Social Security? You said you will retire in June 2025. Will you have income from working from January to June?
Anna Anske says
Yes guestimate around 30K
Harry Sit says
Assuming:
– $30k from January to June from working
– $500/month pension from July to December, which equals $3,000
– $2,727/month Social Security from July to December, which comes out to $16,362
You put 33,000 in the first box in the calculator, 16,362 in the second box, and 0 in the third box. The calculator shows $3,931 of your Social Security benefits is taxable. That makes your gross income $30,000 + $3,000 + $3,931 = $36,931 for the full year. Google a 1040 calculator and it says the total federal tax on annual income of $36,931 for a single filer is $2,447. Call it $2,500. If your total federal income tax withholding from the work income and the pension is less than $2,500, withhold the difference from Social Security or increase the withholding from the work income or the pension.
Follow the example and adjust for other assumptions.
Rose says
Thanks for this. I created a spreadsheet but like the IRS form it’s got too many steps. I was double checking my numbers and am so glad they were the same. Your calculator is much better.
thanks again
Ron Keidar says
I didn’t read all the comments, but it seems to be a mix between the exposure to tax and the actual tax.
Assuming i add another 100K from other sources you listed, the expoure is set to maximum.
However, if theses sources are pure capital gains, the income bracket is lowest, while if those sources are pre-tax 401k and IRA , I assume they push the bracket very high.
If my assumption is correct, it would be good to split the income and capital sources to differentiate exposure to tax from tax brackets and help people strategize how to reduce overlap of SSA with other sources that contribute to income tax brackets.
Make sense?
Harry Sit says
This calculator only calculates how much of your Social Security benefits is taxable, i.e. counts as income on your tax return, or as you said “exposure to tax.” The exposure is the same whether your other income is from pre-tax IRA withdrawals or long-term capital gains. It doesn’t calculate how much tax you’ll pay on that exposure. That calculation depends on the composition of your other income and your deductions. It’s the job of a different calculator.
Cynthia Davis says
I have selected 20% taxes withheld from my SS benefit payment as I never wanted to have to pay at the end of the year. If I plays out that I have overpaid, (as I also typically do on earned income, for the same reason) will the overpayment of taxable SS income automatically be included or part of my refund? Thanks for your helpful info.
Paula says
If the total tax withheld exceeds what you owe, then you will get a refund. The source of the income on which tax is withheld is not relevant