Retirement paperwork

[jineatonmi]

I have retired at age 67 in the middle of 2025.  In general, what forms will I need and what paperwork should I expect to see?

[xmasbaby0]

If you have begun to receive Social Security benefits you need to watch for your SSA1099 that will be mailed to you by Social Security in January.   If you are receiving a pension, watch for a 1099R from the pension plan--or go to the plan's website to look for it.   If you are getting any distributions from a retirement account like an IRA or 401k, you will need a 1099R from the financial institution that manages the account.   You might be able to import it into tax software, depending on whether the financial institution is partnered with TT to allow importing data.

 Go to Federal> Wages & Income>>Retirement Plans and Social Security  (SSA1099 and 1099RRB) to enter your SSA1099.

To enter your retirement income, Go to  Federal> Wages and Income>Retirement Plans and Social Security>IRA  401 k) Pension Plan Withdrawals to enter your 1099R.

NOT ON THE DROP DOWN LIST

If your bank or financial institution is not on the drop down list, click the words “I’ll type it in myself” and key in your information by hand.

See if your financial institution is on the Partner List - If not, you will have to enter the information manually.  

IMPORTING VARIOUS KINDS OF 1099’s

https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/import-1099s/L2...

[xmasbaby0]

First year of receiving SS

https://faq.ssa.gov/en-US/Topic/article/KA

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 2021 it was  $18,960.  For 2022 it was  $19,560  —  for 2023 $21,240)  For 2024, $22,320.  For 2025 it will be $23,400

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.  If you work as an independent contractor then you will pay self-employment tax for Social Security and Medicare.

To see how much of your Social Security was taxable, look at lines 6a and 6b of your 2024 Form 1040

https://www.irs.gov/help/ita/are-my-social-security-or-railroad-retirement-tier-i-benefits-taxable

You need to file a federal return if half your Social Security plus your other income is

Single or Head of Household      $25,000

Married Filing Jointly                  $32,000

Married Filing Separately            $0

Some additional information:  There are 9 states that tax Social Security—Colorado, Connecticut,, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont  and West Virginia These states offer varying degrees of income exemptions, but two mirror the federal tax schedule: MN and VT.

IF YOU WANT TO HAVE TAX WITHHELD FROM YOUR SOCIAL SECURITY BENEFITS

https://www.ssa.gov/manage-benefits/request-withhold-taxes

https://www.irs.gov/forms-pubs/about-form-w-4-v

FIRST YEAR OF SOCIAL SECURITY

People get really c

[jineatonmi]

I use Turbotax online, will it cover all the required IRS forms?

[xmasbaby0]

@jineatonmi Yes---you will be able to enter retirement income using online TurboTax software.