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Irs Publication 915 for Form

Irs Publication 915 for Form

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hello Scott Thomas here to talk about tax Clarity and your Social Security retirement income if all you had when your tax return was Social Security you'd pay no federal income tax at all but when you have other types of income it can cause your Social Security to become taxable it's common for advisers to say that 85% of your benefits are going to be taxable and for high income people 85% is often taxable and 15% is tax-free for the middle and upper income folks that is not true because it's based upon a formula called the provisional income formula we can have some strange impacts so let's walk through what happens your provisional income it includes 1/ half of your Social Security benefits it also includes taxable income including dividends realized capital gains interest plus it includes non- tax taxable interest such as that from municipal bonds so once we've calculated provisional income it's time to apply the thresholds and here is

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