Approximately 55 million people receive social security benefits and of those 15 million people pay taxes on their social security benefits. Demographically 40 million of the beneficiaries are age 65 or older.

Determining if your benefits are taxable is complicated and depends on your other income and filing status.

The first step in calculating whether your social security benefits are taxable is to determine what your ”Combined Income” is which is the sum of your “Adjusted Gross Income” plus Nontaxable Interest plus one half of your Social Security Benefits.

If your “Combined Income” exceeds $44,000 up to 85% of your Social Security Benefits may be taxable.