Retirement & SS windfall

Romoa24 — Thu, 15 Jul 2021 16:38:38 GMT

I retired this year at 60 receiving only my pension check while paying a portion of medical until I reach 65. I have enough credits to collect SS, but I’m under the windfall, since I worked in a company for my last 30 that didn’t pay into SS so when I start collecting I will not collect my full Social Security. Should I collect my Social Security at 62 versus waiting till 65-67? When I start collecting Social Security will that put me in a higher tax bracket? What can I do so I’m not surprised at the end of the year when I go to file my taxes? Should I ask that additional money be taken from my federal and state taxes and if so how much so I’m not surprised having to pay a huge tax payment. Thank you

Re: Retirement & SS windfall

VincentL12345 — Thu, 15 Jul 2021 22:56:29 GMT

Should I collect my Social Security at 62 versus waiting till 65-67? There is a penalty to file before your full retirement age.

When I start collecting Social Security will that put me in a higher tax bracket? It depends on your current tax bracket and the amount of your social security.

What can I do so I’m not surprised at the end of the year when I go to file my taxes? Calculate your estimated income with social security less your deductions to arrive at your adjusted gross income. Compute the tax and determine if your withholding is adequate.

Should I ask that additional money be taken from my federal and state taxes? See the above calculation. If you are short in your withholding then adjust your W-4 withholding or make estimated taxes.

If so how much?

topic Re: Retirement & SS windfall in Retirement tax questions

Retirement & SS windfall

Re: Retirement & SS windfall