i am 61 and thinking about the option to start collecting social security at 62 (next year) but find a part-time job that might provide medical insurance. how will my income tax be impacted? Is there a maximum salary should i make sure i don't go over to avoid paying too much in taxes?.
Hi, @ri-solano , thanks for the question!
If your MAGI is more than $32,000 if Married Filing Jointly or $25,000 for all other filing statuses, then at least some of your Social Security income may be taxable. Your MAGI is defined as half of your Social Security benefits, plus 100% of your other income. This TurboTax article goes into more detail.
Hope this helps, please let me know if this raises additional questions!
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There are 2 different things to know about social security. People get them mixed up all the time.
1. Your actual SS checks
If you are over full retirement age your actual ss checks won't be reduced. Otherwise they will actually reduce your payments if you make too much other income in the prior year. See SS FAQ for working after retirement
2. Income Tax
For any age 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
Is your Social Security taxable?
IRS Pub. 915 on Social Security. There is a blank worksheet on page 16
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