J.K. Lasser's Your Income Tax 2023, 2nd Edition

CHAPTER 34Special Tax Rules for Senior Citizens and the Disabled

34.1	Senior Citizens Get Certain Filing Breaks	636
34.2	Social Security Benefits Subject to Tax	636
34.3	Computing Taxable Social Security Benefits	637
34.4	Election for Lump‐Sum Social Security Benefit Payment	642
34.5	Retiring on Social Security Benefits	642
34.6	How Tax on Social Security Reduces Your Earnings	643
34.7	Eligibility for the Credit for the Elderly or the Disabled	644
34.8	Figuring the Credit for the Elderly or Disabled	644
34.9	Tax Effects of Moving to a Continuing Care Facility	645
34.10	Medicare Part B and Part D Premiums for 2023	647
34.11	Special Tax Rules for Individuals with a Disability	647
34.12	ABLE Accounts	648

All of your Social Security benefits are tax free if your “provisional income,” explained in 34.3, is $25,000 or less if you are single, or $32,000 or less if you are married and file a joint return. No more than 50% of your benefits are subject to tax if you file a joint return and your provisional income is over $32,000 but no more than $44,000, or if you are single and your provisional income is over $25,000 but no more than $34,000. When provisional income exceeds $34,000 or $44,000 (depending on your filing status), no more than 85% of your benefits are subject to tax. If you are married and filing separately, and did not live apart for the whole year, you must apply the 85% rate without considering the base amounts. If you are married filing ...