ssdi and retirement

[scarlettohara51]

Wanting to pull my small retirement out. How will it effect paying taxes?

[VolvoGirl]

If you take a Withdrawal it is taxable on your return and may push you into a higher tax bracket and more income can reduce or eliminate some credits you may qualify for and make more of your Social Security Taxable.   So be careful.  Then there is a 10% Early Withdrawal Penalty if you are under 59 1/2 or under 55 if you left that job.  You can lose like up to 50% of it for taxes and penalties for federal and state.

For SS and SSDI 

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

[scarlettohara51]

It will total at 26,882. So it’s only 1,882 over 25,000. I’m over the age of 59 1/2.