rjs
Level 15
Level 15

Retirement tax questions

Deferring the Social Security tax does not increase your taxable income. Your full gross pay is taxable, whether or not Social Security tax is taken out.


We cannot be certain what the rules would be if the deferred tax is forgiven, since no legislation to forgive it has been passed, or even proposed. But it seems extremely unlikely that the forgiven tax would be treated as taxable income, since you have already paid tax on it.