I understand that a portion of Social Security benefits may be taxable even when I retire. Can you tell me how to calculate this?
The requirement to pay federal income tax on your Social Security benefits will depend on your income and filing status. About 35% of Social Security recipients have total incomes high enough to trigger federal income tax on their benefits.
To figure out if your benefits will be taxable, add up all of your "provisional income." This includes wages, taxable and non-taxable interest, dividends, pensions and taxable retirement-plan distributions, self-employment and other taxable income, then add half of your annual Social Security benefits and subtract certain...More