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Level 1
posted Jul 15, 2021 10:12:27 AM

Social Security & Taxes

I've reached full retirement age, am still working full-time and collecting Social Security. How will I be taxed - Fed and State of Virginia?

0 3 1264
3 Replies
Level 2
Jul 15, 2021 10:39:48 AM

I'm just a Forum Member, not a professional.

Your tax liability will depend on the level of income you have from different sources (W2, Long Term Capital Gains, HSA, Reverse Mortgage, etc) Some of these income sources are Taxed, others are not.  For specifics to your situation, consult a licensed CPA or do what I do...consult with Turbo Tax CPA's well in Jan, June and December.

Employee Tax & Finance Expert
Jul 15, 2021 10:57:27 AM

Social Security benefits are not taxed at the state level, but for federal they could be taxable up to 85% depending on your other income 

https://www.ssa.gov/benefits/retirement/planner/taxes.html#:~:text=Income%20Taxes%20And%20Your%20Social%20Security%20Benefit,-Some%20of%20you&text=between%20%2425%2C000%20and%20%2434%2C000%2C%20you,your%20benefits%20may%20be%20taxable.

 

Level 15
Jul 15, 2021 11:49:32 AM

If you are at full retirement age, working will not reduce your SS benefit.

 

If your only income is social security, it's non-taxable.  If you have any other income (investments, a job, lottery prize, etc.) then that income is taxable and your social security might also be taxable, depending on how much your other income is, using this formula

https://www.irs.gov/newsroom/dont-forget-social-security-benefits-may-be-taxable