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Retirement tax questions
@76maddog wrote:
Do personal exemptions like mortgage and tax deducts etc etc reduce taxable income after the 25,000 single income max and do you deduct the typeB medical premium for total social security income
Medicare premiums paid from the Social Security benefits received do Not reduce the amount of SS benefits reported on a tax return.
Your Adjusted Gross Income on the tax return is reduced by either your Standard Deduction or your Itemized Deductions, whichever is greater. For most all taxpayers the Standard Deduction will be greater than the Itemized Deductions. The deductions you mentioned, medical expenses/medical premiums, home mortgage interest, etc. are all itemized deductions.
When either the Standard or Itemized deduction is subtracted from the Adjusted Gross Income the result is your Taxable Income.
For example if your Adjusted Gross Income was $8,000 subtracting the Standard Deduction for a Single Filer age 65 or older of $14,050 reduces your Taxable Income to $0 so no taxes are owed.