Whether your Social Security is taxed will depend on how much other income you are receiving with the SS.
TAX ON SOCIAL SECURITY
Up to 85% of your Social Security benefits can be taxable on your federal tax return. There is no age limit for having to pay taxes on Social Security benefits if you have other sources of income along with the SS benefits. When you have other income such as earnings from continuing to work, investment income, pensions, etc. up to 85% of your SS can be taxable.
What confuses people about this is that before you reach full retirement age, if you continue working while drawing SS, your benefits can be reduced if you earn over a certain limit. (For 2019 it was $17,640— for 2020 it was $18,240; for 2021 it was $18,960. For 2022 it was $19,560 — for 2023 $21,240)
After full retirement age, no matter how much you continue to earn, your benefits are not reduced by your earnings; your employer will still have to withhold for Social Security and Medicare. If you work as an independent contractor then you will pay self-employment tax for Social Security and Medicare.
To see how much of your Social Security was taxable, look at lines 6a and 6b of your 2022 Form 1040
https://ttlc.intuit.com/questions/1899144-is-my-social-security-income-taxable
https://www.irs.gov/help/ita/are-my-social-security-or-railroad-retirement-tier-i-benefits-taxable
You need to file a federal return if half your Social Security plus your other income is $25,000 when filing single or head of household, or $32,000 when filing married filing jointly, $0 if you are filing married filing separately.
Some additional information: There are 11 states that tax Social Security—Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, and Vermont These states offer varying degrees of income exemptions, but two mirror the federal tax schedule: MN and VT.
Hello and thank you for your question. It is especially a really good one for tax planning. You can continue to work and collect social security. Depending how much is in wages your social security benefits may be taxable up to 85%. I will include this article from social security as well.
Hi @cathiedamico Thank you for joining us today for our TurboTax Live Event.
The Tax Expert @carmen_t & Champ @xmasbaby0 have provided great resources how social security and your additional earned income would be taxed. To determine your individual situation below are useful tools to estimate your 2023 Individual income tax and determine your tax brackets for 2023:
TurboTax's TaxCaster tax calculator:
https://turbotax.intuit.com/tax-tools/
2022 and 2023 Tax Brackets:
https://turbotax.intuit.com/tax-tips/irs-tax-return/current-federal-tax-rate-schedules/L7Bjs1EAD
If estimated payments are required you can set up an IRS Online account with the following link:
https://www.irs.gov/payments/your-online-account
Hope the additional resources were helpful. Please reach out if you have additional questions.
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Bonnie, TTLive Tax Expert