I believe what you are referring to with the first year rule is you can make however much and it doesn't affect your social security benefits?
This is not the same as how it affects your taxes. Your taxable social security is calculated by taking your AGI, plus nontaxable interest and half of your SS benefits. Then compared to the chart below to determine how much of your SS is taxable.
If you fall into the following, 85% of your social security is taxable income
- Single with income above $34,000
- Married Filing Jointly with income above $44,000
- Married Filing Separate regardless of income
If you fall into the following, 50% of your social security is taxable income
- Single with combined income between $25,000-$34,000
- Married Filing Jointly with combined income between $32,000 and $44,000
Your combined income is calculated by adding your
- AGI plus
- Nontaxable Interest plus
- 1/2 of your social security Benefits
Social Security Benefits Taxes
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