Provisional Income
A measure of your income that the IRS uses to decide whether - and how much of - your Social Security benefits are taxable each year.
Official source: ssa.gov
## Key facts
- Below $25,000 single or $32,000 married filing jointly: none of your Social Security benefit is taxable. - Between $25,000 and $34,000 single, or $32,000 and $44,000 married: up to 50% of benefits may be taxable. - Above $34,000 single or $44,000 married: up to 85% of benefits may be taxable. - These thresholds were set in 1984 and 1993 and have never been adjusted for inflation, so more retirees fall into the taxable range each year. - VA disability compensation does not count toward provisional income. It is fully tax-free.
Frequently asked questions about Provisional Income
What is provisional income?+
It is the IRS formula used to determine how much of your Social Security benefit is taxed at the federal level.
How is it calculated?+
Adjusted gross income plus any tax-exempt interest plus half of your Social Security benefits for the year.
Is VA disability counted?+
No. VA disability compensation is tax-free and does not count toward provisional income.
Source: ssa.gov