Are social security, pension and unemployment considered income?

Q. I am 66 years old and I receive my pension, social security, unemployment and an early retirement pension of 50% of salary. Are all of these sources counted as income?

– Concerned

A. The short answer is yes, everything is taxable.

Pensions, including IRAs, are taxable income, with the exception of Roth IRAs, said Michael Karu, chartered public accountant at Levine, Jacobs & Co. in Livingston.

Unemployment is taxable for federal purposes, but not for New Jersey, like Social Security, he said.

“The only advantage, if you can call it that, is that Social Security is not 100% taxable,” he said. “The percentage varies depending on your total income.”

According to the IRS, to find out whether Social Security benefits are taxable, taxpayers must take half of the Social Security money they collected during the year and add it to their other income.

Other income includes pensions, salaries, interest, dividends and capital gains, he said.

If you are single and the total exceeds $ 25,000, a portion of Social Security benefits may be taxable.

If you’re jointly married, you should take half of their Social Security, plus half of your spouse’s Social Security, and add it to all of your combined income, the IRS said. If this total is greater than $ 32,000, part of your Social Security may be taxable.

The IRS said 50% of a taxpayer’s benefits could be taxable if they are:

• Declaration of single, single, head of household or eligible widow or widower with an income of $ 25,000 to $ 34,000.
• Married and having lived separately from their spouse for the entire year 2019 with an income of $ 25,000 to $ 34,000.
• Married with an income of $ 32,000 to $ 44,000.

Up to 85% of a taxpayer’s benefits may be taxable if they are:

• Single person, head of household or eligible widow or widower deposit with an income greater than $ 34,000.
• Married with an income of over $ 44,000.
• Married and having lived separately from their spouse for the entire year 2019 with an income of over $ 34,000.
• Married separately and lived with spouse at all times in 2019.

Also note that New Jersey offers a pension exclusion for those earning less than $ 100,000 per year, who are 62 years of age or older, or who are disabled, as defined by Social Security Administration guidelines, so it is possible that you escape state taxes on your income.

Send your questions to [email protected].

Karin Price Mueller writes on Bamboo column for NJ Advance Media and is the founder of NJMoneyHelp.com. Follow NJMoneyHelp on Twitter @NJMoneyHelp. Find NJMoneyHelp on Facebook. Register for NJMoneyHelp.comof weekly electronic newsletter.