Recieved ss benefits after full retirement why are my ss benefits bing taxed age

[VolvoGirl · Accepted solution]

The tax is different than the rule about being under age.  When you are under retirement age they will actually reduce your checks if you make too much other income.

But SS is always taxable.  Up to 85% of Social Security becomes taxable when all your other income plus 1/2 your social security, reaches:
Married Filing Jointly: $32,000
Single or head of household: $25,000
Married Filing Separately: 0

[jocowen03]

Why is statement on the SS fact sheet: Retirement Earnings Test Exempt Amounts: Under full retirement age   $15,720/yr.   $16,920/yr.    ($1,310/mo.)   ($1,410/mo.)                NOTE:  One dollar in benefits will be withheld for every $2 in earnings above the limit.
     The year an individual reaches full  $41,880/yr.  $44,880/yr.   retirement age    ($3,490/mo.)  ($3,740/mo.) NOTE:  Applies only to earnings for months prior to attaining full retirement age.  One dollar in benefits will be withheld for every $3 in earnings above the limit.  
   There is no limit on earnings beginning the month an individual attains full retirement age.

[xmasbaby0]

What is your question?  Are you questioning why your benefits are taxable or why an employer is still withholding SS from your pay?  You added onto an old thread and we cannot tell what your question is.

[jocowen03]

I am fully retired, not working but must take RMD. due to increase income my SS benefits being taxed. Why does 2017 SS fact sheet state No limit on earnings after individual attains full retirement ?

[xmasbaby0]

You are confusing two separate issues regarding Social Security.
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 is $16,920)  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 line 14b of your 1040A, or line 20b of your 1040
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[VolvoGirl]

2 different things.  How much they pay you and how much is taxable.  If you are under full retirement age then your Social Security monthly checks will actually be reduced if you make too much the prior year.

[jocowen03]

I think I got it. My problem is if my increase was from Job earns the income would already have SS& fed taxes taken out But since my extra income is from 401 Required Min Distribution no SS was taken out so a portion of SS  benefits were taxable SS . and the statement on the fact sheet is right" no limit on (job) related earns at full retirement"  In common language Is this right ??

[VolvoGirl]

No that has nothing to do with it.  The taxable amount of SS Benifits is just based on all your other income no matter what it’s from wages, retirements, investments, everything.

To see the Social Security Benefits Calculation Worksheet  in Turbo Tax Online version you would have to save your return with all the worksheets to your computer.  Or if you are using the Desktop program you can switch to Forms Mode (click Forms in the upper right) and click on SS in the list on the left side.