You'll need to sign in or create an account to connect with an expert.
There are 2 different things to know about social security. People get them mixed up all the time.
1. Your actual SS checks
If you are over full retirement age your actual ss checks won't be reduced. Otherwise they will actually reduce your payments if you make too much other income in the prior year. See SS FAQ for working after retirement
https://www.ssa.gov/benefits/retirement/planner/whileworking.html
2. Income Tax
For any age 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
The special rule for the first year has nothing to do with income tax. The special rule affects whether or not your Social Security benefits are reduced because of your other income. It does not affect how much of your Social Security income is taxable.
The percentage of your Social Security income that is taxable depends on your total Social Security income for the year and your total other income. The calculation for the first year is the same as for any other year.
The sentence that you quoted from the Social Security pamphlet is about the "earnings limits." The earnings limit is how much you can earn without having your benefits reduced. The sentence in the pamphlet is not about income tax.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
AAR1
New Member
greensearose
New Member
mcgheero
Level 1
lat-laws-gmail-c
New Member
edithgates
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.