I am planning to retire the first of 2024. If my Social Security payment is $32,000 per year and I don't take any of my retirement funds, What would be the tax on the SS. I will be 66 1/2 in January 2024.
Good morning, wardtheo!
Congratulations on retirement!!
If social security benefits are your ONLY income, you will not have a tax liability (no tax due on the benefits and, frankly, no need to file a return).
However, if you have other income or are filing a joint return with your spouse that has other income, part of your social security benefits could become subject to tax. That depends on your filing status and how much income you have above the threshold. Below is a link that gives you the thresholds (scroll to the bottom to the section titled "Do I pay Social Security tax or income tax on my Social Security benefit payments?".
EA for 29 years
If you you file as an "individual" and your combined income is between $25,000 and $34,000, you may have to pay income tax on up to 40% of your benefits. To calculate your combined income:
Your adjusted gross income
+ Nontaxable interest
+1/2 of your Social Security benefits
= Your +combined income"
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Still have questions?Make a post