To determine whether any of your benefits are taxable, compare the base amount for your filing status with the total of one half of your social security payments plus all your income from other sources, including tax exempt interest. If you are married and file a joint return, you must combine your incomes and your social security and equivalent tier 1 railroad retirement benefits when figuring the taxable portion of the benefits.

The taxable amount of the benefits is figured on a worksheet in the Form 1040 or Form 1040A instruction book, or in Publication 915, Social Security and Equivalent Railroad Retirement Benefits. Refer to Tax Topic 423, Social Security and Equivalent Railroad Retirement Benefits, for base amounts, and additional information regarding taxability and reporting requirements.

References:

• Publication 915, Social Security and Equivalent Railroad Retirement Benefits
• Tax Topic 423, Social Security and Equivalent Railroad Retirement Benefits

You need to check the Social Security Administration web site, at www.ssa.gov . Or, you can contact the Social Security Administration at 1-800-772-1213. They are currently providing information of this nature in an online format. Their web site may also answer your other questions concerning social security.

References:

• Social Security Administration

There is no difference in the formula for determining the taxation of social security benefits - whether the benefits are age-related or disability-related, except social security benefits do not include supplemental security income (SSI) payments, which are not taxable.

References:

• Publication 915, Social Security and Equivalent Railroad Retirement Benefits
• Tax Topic 423, Social security and equivalent railroad retirement benefits

The income is reportable on the return of the person who has the legal right to receive the benefits. The social security benefits belonging to your dependent child must be added to your child's other income to see whether any of those benefits are taxable to the child. Whether the benefits are taxable will depend on the amount of benefits and amount of other income including interest or dividends.

References:

• Publication 915, Social Security and Equivalent Railroad Retirement Benefits
• Tax Topic 423, Social security and equivalent railroad retirement benefits

Social security is not considered earned income for EIC purposes. However, depending on your other earnings during the year, part of it may be taxable income.

References:

• Earned Income Tax Credit (EITC) Questions and Answers
• Publication 596, Earned Income Credit
• Tax Topic 423, Social security and equivalent railroad retirement benefits