Provisional income in Social Security can result in 100% tax-free benefits.

hindkunj.com

CREDIT GETIMAGE

If you earn income from other sources in addition to receiving Social Security benefits, it's important to know how provisional income affects your taxes.

CREDIT GETIMAGE

Know tax-free provisional income

CREDIT GETIMAGE

If you're single and have less than $25,000 in provisional income, you'll be tax-free up to $32,000 if you're married and filing jointly.

CREDIT GETIMAGE

Know Tax-Free Roth IRA Withdrawals

CREDIT GETIMAGE

These let you withdraw money free of federal taxes and state taxes. It must be taken if you've had at least one Roth IRA open for more than five years and you've reached age 59½.

CREDIT GETIMAGE

Know tax-free home sale gains

CREDIT GETIMAGE

Single taxpayers who file jointly do not have to pay federal taxes on up to $250,000 of gains from the sale of a home in the same way that those filing jointly do not pay federal taxes on up to $500,000 of gains from the sale of a principal home.

CREDIT GETIMAGE

To qualify, you will need to pass certain tests regarding home ownership, home use, filing status, and previous sales.

CREDIT GETIMAGE

Next steps

Provisional income in Social Security can result in 100% tax-free benefits.

3

share the story

A

click here for more information