John M. Hoffman & Associates CPAs
Frequently Asked Tax Questions
"Are social security benefits subject to income tax?"
Perhaps, depending on your income, up to 85% of your social security benefits can be included in your gross income for federal tax purposes. The formula to determine how much is taxable is a little complicated (another reason why we do these on a computer).
Social security benefits are not taxable in most states (not taxable in Massachusetts).
Social Security benefit tax information is reported by the Social Security Administration on form 1099-SSA. The amount of gross benefit is likely not what you received every month because of deductions for Medicare and the likes. This is why we like to have that form.
