Tax on SS Benefits

[edelmadj]

I am 74 but still have a full-time job. I read in a SS notification that I may keep all my benefits. However, while filling out my tax return, I had to pay federal tax on most of it. Why, and what should I do?

[bluedeb · Accepted solution]

Your SS Benefits are still taxed.

• If you work past your full retirement age (FRA) and have earned income, you’ll still have to pay Social Security taxes, even if you're already collecting benefits.

• Continuing to work while collecting Social Security could boost your monthly benefit depending on how much you made in the past and how much you're making now.

• That added income could also mean higher income taxes and higher Medicare premiums. Be sure to look at the big financial picture so you know what to expect.

See the following for more information:

https://turbotax.intuit.com/tax-tips/retirement/when-does-a-senior-citizen-on-social-security-stop-f...

[fanfare]

 You can thank Ronald Reagan for taxation of SS benefits.

It was supposed to save the program, but of course it hasn't.

[jcobbson]

taxes on social security

[DawnC]

What would you like to know about taxes on social security?   @jcobbson   

Whether or not your Social Security income is taxable depends on your total income, including your Social Security plus any other income. Generally speaking, if your only income is Social Security, you probably don't make enough money to be required to file a federal tax return.

For those with additional sources of income, the key figure is the Modified Adjusted Gross Income (MAGI). The MAGI includes half of your Social Security, plus other sources of income. Once your MAGI exceeds the base amount for your filing status ($32,000 for Married Filing Jointly, otherwise $25,000), at least part of your Social Security income becomes taxable. The taxable portion of your Social Security income increases once you reach additional MAGI thresholds.

To determine if your Social Security income is taxable, all you need to do is enter that income. TurboTax does the rest!   

• Where do I enter an SSA-1099, SSA-1099-SM, or SSA-1099-R-OP1?
• Do I need to file a federal return this year?
• What is a lump-sum Social Security payment?