TTX handles it quite well...but you're misinterpreting what SS said.
Your SS is still subject to Income taxes the first year...it's just that...if you are under full retirement age, SS will not reduce your SS monthly benefits during that first year. That's something else entirely..
"Special rule for the first year
you retire
Sometimes people who retire in mid-year
already have earned more than the annual
earnings limit. That’s why there is a special
rule that applies to earnings for one year, usually the first year of retirement. Under
this rule, you can get a full Social Security
check for any whole month you’re retired,
regardless of your yearly earnings."
(page 4: https://www.ssa.gov/pubs/EN-05-10069.pdf)
Nothing special to do that first year, you just put in all your income and your SSA-1099, and then SS will later get their own copy of what you filed.
But if you are still below full retirement age the next year (and continue working), you do need to talk to SS about that because they may need to reduce your monthly SS payout for that next year....or the next according to how much you are earning that year (Meaning W-2 or self-employment income)
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____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
