![]() Because Joe and Mary each receive $20,000 per year in social security income in this example, 85% of that amount, or $17,000 from each of their benefits, will be taxed as income.Īt the state level, IRA distributions are generally not taxable in Pennsylvania. As a result, 85% of their social security income will be taxed at their ordinary income rates. They are above $44,000 per year of "Combined Income". Joe and Mary have $30,000 per year in pension income, they also took a $20,000 Traditional IRA distribution, and they have about $20,000 per year each in social security income. “Combined Income” is equal to Adjusted Gross Income + nontaxable interest income (such as municipal bond income) + ½ of social security income. At the state level, social security income is not taxable in Pennsylvania.Īt the federal level, social security income tax varies based on income.įor single filers with “Combined Income” in 2020:īelow $25k, social security benefits are not taxed.īetween $25k and $34k, 50% of social security benefits are taxed as income.Ībove $34k, 85% of social security benefits are taxed as income.įor joint filers with “Combined Income” in 2020:īelow $32k, social security benefits are not taxed.īetween $32k and $44k, 50% of social security benefits are taxed as income.Ībove $44k, 85% of social security benefits are taxed as income. ![]()
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