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Level 1

I turned 66 on 12/27/17. I can earn $44,800 in 2017 before I would be taxed on my s.s. I earned $37,900. $19k of the $23k of s.s. is taxable. don't know why. Help.

In my 65th year if I turn 66 in that year I was told I could earn $44,800 with out it affecting my social security. I Did not earn over that amount. Why is 82% of my social security taxable?

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Employee Tax Expert

I turned 66 on 12/27/17. I can earn $44,800 in 2017 before I would be taxed on my s.s. I earned $37,900. $19k of the $23k of s.s. is taxable. don't know why. Help.

The first year you earn social security the income limit affects the amount social security you receive after you start receiving it- it is still taxed using the same formula-  next year your earned income will be less so and the same formula will be used to determine the tax. Here’s a quick way to find out if a taxpayer must pay taxes on their Social Security benefits: Add one-half of the Social Security income to all other income, including tax-exempt interest. Then compare that amount to the base amount for their filing status. If the total is more than the base amount, some of their benefits may be taxable.
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Level 20

I turned 66 on 12/27/17. I can earn $44,800 in 2017 before I would be taxed on my s.s. I earned $37,900. $19k of the $23k of s.s. is taxable. don't know why. Help.

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

https://ttlc.intuit.com/questions/1899144-is-my-social-security-income-taxable


You need to file a federal return if half your Social Security plus your other income is $25,000 when filing single or head of household, or $32,000 when filing married filing jointly, $0 if you are filing married filing separately.