Tax on Social Security Income

Federal Tax

When a client's combined Income is higher than the threshold listed below, the social security benefit is taxable in RightCapital. Combined income is defined as the client's AGI plus non-taxable interest plus 50% of Social Security benefit.

Taxable Social Security for Single filer

Client's Combined Income	Single filer
Combined income < $25,000	Social Security benefit not taxable
$25,000 < Combined income < $34,000	50% of Social Security is taxable
Combined Income > $34,000	85% of Social Security is taxable

Taxable Social Security for Married Filing Joint

Client's Combined Income	Married filing Jointly filer
Combined income < $32,000	Social Security benefit not taxable
$32,000 < Combined income < $44,000	50% of Social Security is taxable
Combined Income > $44,000	85% of Social Security is taxable

The tax calculation details in RightCapital can be seen on the Taxable Social Security worksheet in the Tax > Tax Estimate > Details > Taxable Social Security area found in the "1040" dropdown menu. Total Social Security benefits are shown in box 6a on the 1040, while the Taxable Social Security amount is shown in box 6b.

State tax

Only certain states will tax a client's Social Security income. RightCapital will use the client's resident state, entered in the Profile > Family > Client card, to determine if their Social Security benefit is taxable at the state level. Below is a list of states that will tax Social Security benefits.

State	Taxable Social Security Benefit
Colorado	Yes
Connecticut	Yes
Kansas	Yes
Minnesota	Yes
Montana	Yes
New Mexico	Yes
Rhode Island	Yes
Utah	Yes
Vermont	Yes
West Virginia	Yes

Federal Tax

Taxable Social Security Worksheet

State tax