Submitted By: someone
Answered: April 19, 2023 4:44 am

My spouse’s Social Security checks are payable directly to the nursing home she’s in. Are the payments taxable income on our joint return?

Social Security benefits may be tax free or includible in gross income at 50% or 85%. This depends on a couple’s income, Social Security benefits, and tax-exempt interest. The fact that the benefits are payable to a third party does not change the tax result; the Social Security checks are being used for the taxpayer’s benefit.

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Tax Glossary

Individual retirement account (IRA)

A retirement account to which up to $4,000 (or $5,000 if you are 50 or over) may be contributed for 2007, but deductions for the contribution are restricted if you are covered by a company retirement plan. Earnings accumulate tax free.

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