Tax on social security

rjhidaho — Tue, 08 Dec 2020 04:11:14 GMT

We are 69 yo with ss benefits of $36k. Is there is limit on how much I can withdraw from my traditional ira without paying any taxes on my ss benefits? We have no earned income.

Re: Tax on social security

xmasbaby0 — Tue, 08 Dec 2020 04:22:24 GMT

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 2017 that limit was $16,920 —for 2018 it will be $17,040—for 2019 it will be $17,640— for 2020 it will be $18,240) 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.

Look at lines 6a and 6b of your 2020 Form 1040 to see how much (if any) of your Social Security was taxable.

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 13 states that tax Social Security—Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont, and West Virginia. These states offer varying degrees of income exemptions, but four mirror the federal tax schedule: MN, ND,VT, and WV

Re: Tax on social security

fanfare — Tue, 08 Dec 2020 04:31:18 GMT

If you don't want to live on 36,000 per year, be prepared to pay taxes.

When you hit age 72 you will have no choice but to take your RMDs.

topic Tax on social security in Retirement tax questions

Tax on social security

Re: Tax on social security

Re: Tax on social security