Earnings over social security

Hi Stacey,

Thank you for your question.

If you earn between $25,000 and $34,000 per year as a single filer (or $32,000 to $44,000 if you’re married filing jointly), you will pay income taxes on up to 50% of your Social Security benefits. If you earn more than $34,000 (or $44,000 if you’re married filing jointly), you’ll pay taxes on up to 85% of your benefits. You will never be taxed on more than 85% of your Social Security benefits.

For more details on social security tax, please visit the website below.

https://turbotax.intuit.com/tax-tips/irs-tax-return/a-guide-to-social-security-tax/L5QxGNcJL 

 

Hope this answers your question. Feel free to reply if you have any additional questions.

Thank you for your question about how Social Security benefits are affected if you continue to work.

 

According to the Social Security Administration  (https://www.ssa.gov/benefits/retirement/planner/whileworking.html), if you are under the Full Retirement Age the entire year of 2023, you may earn $21,240 without affecting your Social Security Benefits. For amounts over $21,240, for every $2 of additional earnings, your Social Security benefits will be reduced $1. For example, if you earned $31,240, your Social Security benefits would be reduced by $5,000.

 

If you reach Full Retirement Age during 2023, for every $3 earned prior to Full Retirement Age, your Social Security benefits are reduced $1.

 

The month you reach Full Retirement Age, there is no limit on your earnings and, therefore, no affect on your Social Security benefits.

 

Hi Stacey J!

Thanks for your question today! Let me add my added knowledge to my colleagues who are sharing information on your question.

The maximum amount you wil pay on your social security income is 85% if you:

• file a federal tax return as an "individual" and your combined income* is
  • between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits.
  • more than $34,000, up to 85 percent of your benefits may be taxable.
• file a joint return, and you and your spouse have a combined income* that is
  • between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits.
  • more than $44,000, up to 85 percent of your benefits may be taxable.
• are married and file a separate tax return, you probably will pay taxes on your benefits.

To clarify a bit, If one -half of your social security and all other taxable income is less than $25, 000 if single and $34000 if filing jointly noe of your social security is taxed. However, if filing separately from a spouse all could be subject to taxes!

Thank you for this opportunity and I do hope that this clarifies your question.

JanKit said..... The maximum amount you wil pay on your social security income is 85%.....

 

Just to clarify, you don't pay 85%.  Up to 85% of your SS can be taxable depending on your other income.