I will start collecting SSB in October 2023 after I reach my FRA in September 2023 while continue to work full time at my current job. Since the deductions on my paycheck remain the same, when I file income tax next year, how will I be taxed? My salary plus the 3 months SSB payment or the SSB is taxed separately? Thank you.
Hi, @ecwangus , thanks for the question! This article from TurboTax explains taxation of Social Security in detail, as does this article from the IRS. To sum up, if your MAGI (defined as half of your Social Security income, plus all of your other income) exceeds $32,000 if Married Filing Jointly or $25,000 for all other filing statuses, then at least part of your Social Security will be taxable. The good news is that TurboTax will make these calculations for you.
Hope this helps, please let me know if this raises additional questions!
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