I started my retirement in March of this year. I am at full retirement age, born 1954. My question is how much tax should I expect to pay on 80K I took from my companies profit sharing to pay off my mortgage? If I include this amount as earned income my gross income for the year will be approximately 110K.
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Money taken from your profit sharing plan would be fully taxable as income, since it has never been taxed. You did not mention your filing status or state, but I can make a few observations:
1) Your social security benefit will be taxed at 85% of the total amount of social security benefit, based on your overall income outside of social security.
2) A quick calculator for determining your taxable income would be this one: https://smartasset.com/taxes/income-taxes . Include 85% of your total social security benefit amount as part of your taxable income when you make the calculation. For instance, if your total income is $110k and you are Single, your federal income tax calculates to $17,504 (with the standard deduction). If you would like a more accurate calculator, use our TaxCaster: https://turbotax.intuit.com/tax-tools/calculators/taxcaster/
I am single living in Colorado. 80K profit sharing 22K Social Security 9k earned income for 2021
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