It can be easy for those aren’t retired to forget that Social Security benefits are taxable. In fact, for many Americans, a large majority of benefits could be taxed.

But what determines this income tax on the Social Security benefits? There are a few things to know.

Annual Earnings

The percentage of an individual’s Social Security benefits that is taxed depends on how much they earn over the year. This combined retirement income, as well as how an individual files for taxes, determines the percentage of their benefits subject to being taxed.

As Smart Asset explains, those who earned less than $25,000 and filed individually for their 2020 taxes, did not have to worry about taxes on their benefits. However, for those filing individually with annual incomes between $25,000 and $34,000 had their benefits taxed up to 50%. Any more than $34,000 and up to 85% of the individual’s benefits could be taxed.

These numbers change for those who filed jointly as a married couple. In 2020, a combined income between $32,000 and $44,000 called for up to 50% of their benefits to be taxed. While those with combined incomes over $34,000 could have had up to 85% of their Social Security benefits taxed, according to Smart Asset.

Money Tree explains how to calculate a quick answer to the question “are my Social Security benefits taxable?” Check out their article for more information.

Social Security Benefits Should Not Be Taxed

This tax on Social Security is unjust. Senior citizens have earned their benefits through years of hard work and deserve to keep their whole income. This is one reason why Senior Security Alliance is working to get The Senior Citizens Bill of Rights passed.

Our bill helps seniors nationwide achieve more financial stability. For more information on how to help us urge the politicians in Congress to take a stand for seniors, check out our page here.