Q: After working for many years, we are finally entitled to Social Security. But it’s still taxed by the IRS, even though we already paid taxes on our income before?
W.S., Diamond Bar
A: The Social Security Act and related laws were passed for certain purposes: (a) Provide for the material needs of individuals and families; (b) protect older people and those with disabilities against the costs of illness that could eat up their savings; (c) keep families together; and (d) give children the chance to grow up healthy and secure. With these good objectives in mind, your question does have a sting: If Social Security is taxed, isn’t that double taxation?
The reality is we often pay taxes when we withdraw monies from retirement accounts. So, yes, the IRS may tax your Social Security benefits, at least in part, but if it is of some solace, California does not.
While Social Security income generally is taxable at the federal level, what you have to pay (if anything) depends upon your income level. If you are single, for example, and your income (from wages, interest, dividends, capital gains or pensions, among other sources) exceeds $25,000, part of your benefits may be taxable. If you are married, filing jointly, and the total (a portion of your Social Security included) exceeds $32,000, then part of your Social Security may be taxable.
It is most prudent to consult with a qualified tax professional about these issues. This column simply cannot provide all the material information you should consider, but below is further, hopefully useful, information.
Q: How do I find the local Social Security office, and how can I contact the Social Security Administration?
P.M., Brea
A: There are nearly 1,300 Social Security offices nationwide. To locate the office nearest you, go online to ssa.gov/locator. There also is a toll-free number. 800-772-1213, that is available from 7 a.m. to 7 p.m. Monday to Friday. You may speak to someone, or listen to recorded information….
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