For tax purposes, a “social security benefit” is a monthly benefit under Title II.
The benefits include retirement, survivor, and disability benefits. They do not include
Supplement Security Income (SSI) payments, which are not taxable.
Taxpayers must include Social Security benefits in the gross income in an amount equal
to the lesser of:
One-half of the net Title II benefits received during the taxable year; or
One-half of the sum derived by subtracting a “base amount” from the taxpayers “modified
adjusted gross income” plus one-half of the Social Security benefits received.