Do You Have to Pay Taxes on Social Security? Is Unemployment Income Taxed?

| Feb 22, 2021 | Accounting and Tax |

 

To continue our series from last week, we wanted to cover a few questions that covered tax liability on alternative sources of income:

  • Do you have to pay taxes on social security?
  • Is unemployment income taxed?

Do you have to pay taxes on social security?

Whether or not you have to pay taxes on your Social Security benefits depends on your income. These levels include: One – Up to 50% of Social Security is taxable for individuals with a total gross income of$25,000 to $34,000, or couples filing jointly with a combined gross income of$32,000 to $44,000.  Two – Up to 85% of Social Security is taxable for individuals with a gross income of more than $34,000, or a couple filing jointly with a combined gross income of more than $44,000.

Is unemployment income taxed?

Yes, the IRS considers unemployment compensation to be taxable income that must be reported on a federal tax return.

 

If you have any questions about the topics discussed in this article, or any tax law matter, please give us a call at Bononi & Company 724-972-4180.

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