I will be at full retirement age Nov. 6th and will be signing up a few months before. I will continue to work for a few years. My salary gross is $65,996 and I can't remember exact amount of SS I will get but it's around $2400/mo. or $28,800/year which means my gross salary will be $94,796/year which keeps me still in the 22% tax bracket.
Will the Social Security be taxed at 22%? I keep seeing it could be about 50% and I understand you can request the SS to take out the taxes or is it best to not do this?
Does the IRS use your gross salary or after deductions like 401k contributions and taxes withdrawn, etc.?
Hope you are having a good day! It's a great idea to plan now for your 2023 tax outcome. When you receive social security benefits in addition to other income, up to 85% of your social security benefits could be taxable 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 or $25,000 for all others), 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.
The taxable portion of your social security benefits is taxed like all your other taxable income according to the tax brackets. You can request with the social security administration to have federal tax withheld, https://www.ssa.gov/manage-benefits/request-withhold-taxes#:~:text=You%20will%20pay%20federal%20inco.... You can also have more withholdings taken out of your salary by submitting a Form W4 to your employer.
Your taxable income is not your gross salary , but after pre-tax deductions. If you review your 2022 Form W2 will see the taxable wages in Box 1, which are less then your gross salary.
Here is a tool to estimated your tax , https://turbotax.intuit.com/lp/ppc/2168?srqs=null&cid=ppc_gg_nb_stan_all_na_Calculator-CalculatorEst...
I hope you find this helpful!
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Still have questions?Make a post