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Level 2
September 27, 2022
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Is retirement taxable

  • September 27, 2022
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    Best answer by xmasbaby0

    Your question is vague.  What kind of retirement income are you asking about?   If your ONLY income is Social Security you do not have to file a tax return.   But if you receive any other sort of income then your Social Security may be taxable.  And, other sorts of retirement income like pensions, distributions from retirement accounts like IRAs or 401k's are taxable on your federal return--and maybe on your state return depending on your state's tax laws.

    2 replies

    xmasbaby0Level 15Answer
    Level 15
    September 27, 2022

    Your question is vague.  What kind of retirement income are you asking about?   If your ONLY income is Social Security you do not have to file a tax return.   But if you receive any other sort of income then your Social Security may be taxable.  And, other sorts of retirement income like pensions, distributions from retirement accounts like IRAs or 401k's are taxable on your federal return--and maybe on your state return depending on your state's tax laws.

    **Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
    Level 15
    September 27, 2022

    States that may tax retirement income from IRA's, pensions, etc.:

    AL, AR, AZ, CA, CO, CT, DE, DC, GA, HI, IA, ID, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MT, NC, ND, NE, NJ, NM, NY, OH, OK, OR, RI, SC, UT, VA, VT, WI, WV, 

    This is a “general” list.  Some of these states have complicated laws that exclude certain types of retirement income, or provide certain income exclusions and age deductions.  This list does NOT refer to Social Security benefits.

     

     

    States that tax Social Security benefits:

    CO, CT, KS, MN, MO, MT, NB, NM, ND, RI, UT, VT, WV

    These states offer varying degrees of income exemptions, but four mirror the federal tax schedule: MN, ND,VT, and WV

     

    States that do not have state income tax and/or do not tax retirement income:

    AK, FL, IL, MS, NV, NH, PA, SD, TN, TX, WA, WY

     

     

    https://ttlc.intuit.com/questions/1900153-are-ira-and-pension-distributions-taxable

     

     

    https://ttlc.intuit.com/questions/1901335-what-is-an-rmd

     

     

     

    TAX ON SOCIAL SECURITY

    Up to 85% of your Social Security benefits can be taxable on your federal tax return.  There is no age limit for having to pay taxes on Social Security benefits if you have other sources of income along with the SS benefits.  When you have other income such as earnings from continuing to work, investment income, pensions, etc. up to 85% of your SS can be taxable. 

     What confuses people about this is that before you reach full retirement age, if you continue working while drawing SS, your benefits can be reduced if you earn over a certain limit. (For 2017 that limit was $16,920 —for 2018 it was $17,040—for 2019 it was $17,640— for 2020 it is $18,240; for 2021 it is $18,960,  (For 2022 it will be $19,560) After full retirement age, no matter how much you continue to earn, your benefits are not reduced by your earnings; your employer will still have to withhold for Social Security and Medicare.

    To see how much of your Social Security was taxable, look at lines 6a and 6b of your 2021 Form 1040

     

    https://ttlc.intuit.com/questions/1899144-is-my-social-security-income-taxable

     

    https://www.irs.gov/help/ita/are-my-social-security-or-railroad-retirement-tier-i-benefits-taxable

     

    You need to file a federal return if half your Social Security plus your other income is $25,000 when filing single or head of household, or $32,000 when filing married filing jointly, $0 if you are filing married filing separately.

     

    **Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
    Aminata12Author
    Level 2
    September 27, 2022

    It was from workman comps 

    Level 15
    September 27, 2022

    @Aminata12 Workman's compensation is not taxable.   You do not enter it on a tax return.

    **Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
    Aminata12Author
    Level 2
    September 28, 2022

    Understood that workman comp is not taxable 

    About settlement paid as lump sum for 3 years partial payment by workman comp?? Thank