IRS Publication 554 — Tax Guide for Seniors
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“Maximum taxable part. The taxable part of your benefits usually can’t be more than 50%. However, up to 85% of your benefits can be taxable if either of the following situa- tions applies to you. • The total of one-half of your benefits and all your other income is more than $34,000 ($44,000 if you are mar- ried filing jointly).”
This section summarizes the tax treatment of amounts you receive from traditional individual retirement arrangements (IRAs), employee pensions or annuities, and disability pensions or annuities. A traditional IRA is any IRA that isn’t a Roth or SIMPLE IRA. A Roth IRA is an individual retirement plan that can be either an account or an annuity and features nondeductible contributions and tax -free Publication 554 (2025) Chapter 2 Taxable and Nontaxable Income 5
distributions. A SIMPLE IRA is a tax -favored retirement plan that certain small employers (including self-employed individuals) can set up for the benefit of their employees. More detailed information can be found in Pub. 590 -A, Pub. 590-B, and Pub. 575.
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