Retirement Taxes

[jf5-buffaloedu]

My wife and I will have $40,000 in Social Security Income, I will have $15,000 in Pension Income, and I will be drawing $60,000 from my Retirement IRA..... are each of these income streams taxed at a different rate?

[LoriC17]

Great question! First lets talk about social security.  The amount of social security that is taxable depends on your total income.

Since you have additional income sources then once your Modified Adjusted Gross Income reaches 32,000  for Married Filing Jointly then a portion of your Social Security income becomes taxable. Both the Social Security and the retirement will be taxed as ordinary income. The tax for your IRA will depend on the type of IRA. What type of IRA do you have?

[LoriC17]

Here is a good link I found on the Social Security website.

https://faq.ssa.gov/en-us/Topic/article/KA-02471#:~:text=You%20must%20pay%20taxes%20on,income%E2%80%....