turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Attend our Ask the Experts event about Extension Filers on Sept 25! >> RSVP NOW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Scheduling Retirement

I plan to retire once I turn 70 at the end of December 2024. How do I determine whether it’s best (taxwise) to retire prior to 12/31/24 or potentially wait a few days until 2025 has begun?

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies
conniem123
Employee Tax Expert

Scheduling Retirement

Hi LEH54,

 

Congratulations on your upcoming retirement and great to plan !

 

Keep in mind that the more other income you have, the more of your social security benefits will be taxable; up to 85% of your social security benefits could be taxable income.  If you are working in 2024, and have wages and other income, then more of your social security benefits would be taxable income, whereas if you waited until 2025 and had less other income in 2025, then less of your social security benefits would be taxable.

 

Less taxable portion of social security benefits, results in less tax.

 

Here is a great article to help you determine how much of your social security benefits would be taxable in 2024 , the year you are working; https://ttlc.intuit.com/turbotax-support/en-us/help-article/retirement-benefits/social-security-inco....

 

I hope you find this information helpful!

Connie

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Cate9
Employee Tax Expert

Scheduling Retirement

Whether you apply for social security benefits before the end of December or in the first week of January should not matter to your benefits.  It may only delay your first payment by a month.  As long as you are applying after age 70, you will be getting the maximum benefits that you can.  In either case, you will not have any reporting for 2024 as you will not get any benefits paid to you until 2025.  Here is a link that helps explain timing and your maximum delayed retirement benefits due to waiting until you turn 70.

 

https://www.ssa.gov/OACT/quickcalc/early_late.html

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies