topic Income in Business & farm

Income

bookfam77 — Sat, 13 Mar 2021 16:23:36 GMT

How will IRS know my income before starting to draw my Social Security?

Re: Income

VolvoGirl — Sat, 13 Mar 2021 16:26:02 GMT

Income for what? You file a tax return each year for all your income including Social Security.

Re: Income

bookfam77 — Sat, 13 Mar 2021 17:13:44 GMT

I started drawing SS in October of 2020. My income will be higher than the limit, but was earned prior to staring to receive benefits. I just want to make sure that i won’t be penalized. Thanks

Re: Income

VolvoGirl — Sat, 13 Mar 2021 17:29:45 GMT

The IRS doesn't need to know that. That is handled at Social Security. How old are you?

There are 2 different things to know about social security. People get them mixed up all the time.

1. Your actual SS checks

If you are over full retirement age your actual ss checks won't be reduced. Otherwise they will actually reduce your payments if you make too much other income in the prior year. See SS FAQ for working after retirement

https://www.ssa.gov/planners/retire/whileworking.html

2. Income Tax

For any age up to 85% of Social Security becomes taxable when ALL your other income plus 1/2 your social security reaches:

Married Filing Jointly: $32,000

Single or head of household: $25,000

Married Filing Separately: 0

Re: Income

VolvoGirl — Sat, 13 Mar 2021 17:36:02 GMT

They do have special rules if you start getting SS later in the year and have income before that. I don't know how that works.