First Year Social Security Income

[Joe_S]

This is my first year receiving Social Security retirement income. I thought the maximum income requirement was waived the first year. If so, why is most of my SS income shown as taxable? Thanks, Joe

[VolvoGirl · Accepted solution]

That is for something else.  

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/planners/retire/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