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in this video I simplify how Income Tax Works on your Social Security payment coming up next on holy Schmidt taxes on Social Security this is one of the most misunderstood elements of the Social Security administrations 100 000 Page Plus website this is because the SSA has rules around Social Security that are not intuitive When comparing it to the U.S tax code which isnt always intuitive either further taxes on Social Security follows a three-test system and the recipient picks the best of the three outcomes and uses that as their method to pay taxes on their Social Security payment if they pay taxes at all all right lets get into it the first thing to remember is that the SSA has rules for those that are single and rules for those that are married if youre single or married its a threshold question how much you earn before you have the potential anyway to start paying taxes on Social Security but the definition of earnings is something called combined income combined income isn
