Q: How is provisional income determined?
A:
Provisional income = gross income + tax-free interest + 50% of Social Security benefits.

Q: What Portion of Social Security is subject to Federal Income Tax?
A:
See the table below.

Portion of Social Security Subject to Federal Income Tax

Single Taxpayers

Married Taxpayers

Percentage of Benefit Subject to Tax

$25,000 or less

$32,000 or less

None

$25,000 to $34,000

$32,000 to $44,000

Up to 50%

Over $34,000

Over $44,000

50% to 85%**

 

Q: What are the 2015 Federal Income Tax Rates
A: See the table below.

Unmarried Individual Returns

Taxable Income
Over Not Over

Tax + % on Excess

Of the Amount Over

 

$0         9,225

$0                +     10%

$0

9,226    37,450

922.50          +    15%

$9,225

37,451   90,750

5,156.25        +   25%

37,450

90,751   189,300

18,481.25       +  28%

90,750

189,301  411,500

46,075.25      +   33%

189,300

411,501   413,200

119,401.25     +  35%

411,500

413,200………………

119,996.25     +  39.6%

413,200

Joint Returns

Taxable Income
Over Not Over

Tax + % on Excess

Of the Amount Over

 

$0            18,450

$0                 +    10%

$0

18,451      74,900

1,845             +  15%

18,450

74,901      151,200

10,312.50       +  25%

74,900

151,201    230,450

29,387.50       +   28%

151,200

230,451    411,500

51,577.50       +   33%

230,450

411,501    464,850

111,324          +   35%

411,500

464,850………………

129,996.50      +  39.6%

464,850

 

 

Q: What are the 2016 Federal Income Tax Rates
A: See the table below.

Unmarried Individual Returns

 

Q: Why should a retiree choose a Tax Deferred Account instead of Savings Products?
A:
A retiree may reduce or eliminate the taxation of their Social Security Benefits by using a Tax Deferred Account.  The interest earned is tax-deferred and does not count toward the Provisional Income calculation until withdrawn.