How much of your social security is taxable if you received $20,000 in 2023 and you is 62 years old.
The taxable portion of your Social Security benefits depends on your combined income, which is calculated by adding half of your Social Security benefits to your other sources of income (including tax-exempt interest). If your combined income exceeds a certain threshold, a portion of your Social Security benefits becomes taxable.
For a single individual aged 62 in 2023, if your combined income is between $25,000 and $34,000, up to 50% of your Social Security benefits may be subject to taxation. If your combined income exceeds $34,000, up to 85% of your Social Security benefits may be taxable.
Since you mentioned receiving $20,000 in Social Security benefits, assuming this is your only source of income, it is below the threshold for any taxability. However, if you have additional sources of income, it's essential to factor them in to determine the taxable portion of your Social Security benefits accurately. Consulting with a tax professional or using tax preparation software may provide more accurate calculations based on your specific circumstances.