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burkesm04
New Member

Is my social security taxed if I am full retirement age? It was my understanding that there was no limit on my earnings?

 
1 Best answer

Accepted Solutions
Coleen3
Intuit Alumni

Is my social security taxed if I am full retirement age? It was my understanding that there was no limit on my earnings?

There are two different issues here.

Waiting until age 66 does not mean that your social security is not taxable. You have reached the age where you no longer have to pay anything back if you earn over the dollar limit.

Income Limit

The Social Security earnings limit for people age 65 and younger will increase from $15,720 in 2016 to $16,920 in 2017. Social Security beneficiaries who earn more than this amount will have $1 in benefits withheld for every $2 in earned income over the limit.

A quick way to find out if any of your benefits may be taxable is to add one-half of your Social Security benefits to all your other income, including any tax-exempt interest. Next, compare this total to the base amounts below. If your total is more than the base amount for your filing status, then some of your benefits may be taxable. The three base amounts are:

  • $25,000 - for single, head of household, qualifying widow or widower with a dependent child or married individuals filing separately who did not live with their spouse at any time during the year
  • $32,000 - for married couples filing jointly
  • $0 - for married persons filing separately who lived together at any time during the year.

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2 Replies
VolvoGirl
Level 15

Is my social security taxed if I am full retirement age? It was my understanding that there was no limit on my earnings?

Yes it is taxable. There is no limit on how much W2 or self employment income you have. Two different things. SS is taxable at any age. But if you are under full retirement age they will actually reduce your monthly SS checks if you make too much other income.
 
 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
Coleen3
Intuit Alumni

Is my social security taxed if I am full retirement age? It was my understanding that there was no limit on my earnings?

There are two different issues here.

Waiting until age 66 does not mean that your social security is not taxable. You have reached the age where you no longer have to pay anything back if you earn over the dollar limit.

Income Limit

The Social Security earnings limit for people age 65 and younger will increase from $15,720 in 2016 to $16,920 in 2017. Social Security beneficiaries who earn more than this amount will have $1 in benefits withheld for every $2 in earned income over the limit.

A quick way to find out if any of your benefits may be taxable is to add one-half of your Social Security benefits to all your other income, including any tax-exempt interest. Next, compare this total to the base amounts below. If your total is more than the base amount for your filing status, then some of your benefits may be taxable. The three base amounts are:

  • $25,000 - for single, head of household, qualifying widow or widower with a dependent child or married individuals filing separately who did not live with their spouse at any time during the year
  • $32,000 - for married couples filing jointly
  • $0 - for married persons filing separately who lived together at any time during the year.
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