How much of your S.S. benefits may be taxable?(Social Security)(Brief Article)(Statistical Data Included)

Due to legislative changes in effect since 1994, the percentage of Social Security benefits payments subject to federal income tax has risen. Since most Americans are likely to live long enough to begin collecting Social Security payments, calculating the amount of your benefits which may be subject to federal income tax should be an important part of your retirement planning.

Applicable rates

In general Social Security benefits are subject to federal income tax whenever your adjusted gross income plus your tax-exempt interest income (whether received or accrued), plus one-half of any Social Security benefits you receive, exceeds $25,000.

For …