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Author: JABoa Big gold star, 5000 posts Feste Award Nominee! Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121114  
Subject: Re: NEW SOCIAL SECURITY TAX LAW ?? Date: 3/29/2000 7:14 PM
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Hi jgvoelling, the answer to your question is Yes, if you make enough of other, unearned income. The worksheet to find out is on Page 25 of your Form 1040 Instructions. If you are single, and you add up everything plus half of your SS income, and if that comes to more than $25,000, then some modest amount of your SS income will be taxed. It's $32,000 if you are Married Filing Jointly.

So, suppose you make a killing on Qualcomm and realize $100,000. You are above the limit and 85% of your SS is subject to tax. Suppose again that you are a rich geezer (I'm not trying to cast any aspersions, it's just an illustration) and you have $100,000 in income from tax-free municipal bonds. Again, that counts for taxability of your SS.
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