I am a 78 year old woman, fully employed, receiving widow’s pension from social security. Are my social security benefits taxable?
Terry Says: That depends on your other income. Here is a link to the specific page at the Social Security website that gives details.
But basically if your “combined income” — which includes income from work, non-taxable interest income such as municipal bonds, and one-half of your Social Security benefits — exceeds $25,000 you may have to pay tax on half of your Social Security benefits. And an individual with “combined income” of more than $34,000 will pay tax on up to 85 percent of Social Security benefits. If you fall into one of these categories be sure to get help filing your tax return to make sure you handle this correctly.