Will we owe taxes?

[greensearose]

My husband and I are both receiving SS benefits and we are both full retirement age.  I no longer work however, my husband is continuing to work full time.  We are aware that if you are full retirement age you can earn as much as you wish (according to SS) but will we be dinged when it is time to file taxes at the end of the year?  Thank you!

[Alicia65]

It all depends on how much your husband makes. You are right you can make as much as you want without penalty.  But if in your case married filing jointly your additional income cannot exceed $32,000. Your social security begins to be taxed after that threshhold.

Your combined annual income	How much of your Social Security benefit is taxable
$25,000 or less	None
Between $25,000 and $34,000	Up to 50%
More than $34,000	Up to 85%

Is my Social Security income taxable?

Thank you for joining us today!

[Alicia65]

I apologize I should chart I originally shared was for a single taxpayer. For Married filing jointly:

Calculating your Social Security federal income tax

Married filing jointly
Your combined annual income	How much of your Social Security benefit is taxable
$32,000 or less	None
Between $32,000 and $44,000	Up to 50%
More than $44,000	Up to 85%

[greensearose]

Thank you, Alicia for responding.  I think I am still lost though.  So my husband was full retirement age in March of this year and started his SS benifits at that time.  So we know that he can earn any amount (because he is at full retirement age) and he won't be penalized with Social Security.  But he will continue to work at his job until December of this year, 2024.  So let's say that he earns $26,000 from the beginning of April to December at his job (or $37,440 from Jan-Dec).  When we go to do our taxes at the end of the year, will the IRS tax us for that $26,000 since it is earned income?  I hope I haven't confused you more than I have myself! haha  Thank you again.  Susan

[VolvoGirl]

Yes you pay tax on the job earnings for the whole year as normal.  Then his Social Security and yours might also be partially taxable.  You will each get a SSA-1099 from Social Security to enter into your tax return.   Do you have any withholding taken out of the SS?  If not you may want to increase his job withholding for the rest of the year to cover the tax or send in an extra estimated amount.  

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

[greensearose]

Thank you so much VolvoGirl! You explained and answered my question perfectly!