topic Re: Social Security & Taxes in Retirement tax questions

Social Security & Taxes

tathomas1 — Thu, 15 Jul 2021 17:12:27 GMT

I've reached full retirement age, am still working full-time and collecting Social Security. How will I be taxed - Fed and State of Virginia?

Re: Social Security & Taxes

Paisano — Thu, 15 Jul 2021 17:39:48 GMT

I'm just a Forum Member, not a professional.

Your tax liability will depend on the level of income you have from different sources (W2, Long Term Capital Gains, HSA, Reverse Mortgage, etc) Some of these income sources are Taxed, others are not. For specifics to your situation, consult a licensed CPA or do what I do...consult with Turbo Tax CPA's well in Jan, June and December.

Re: Social Security & Taxes

AmitaR — Thu, 15 Jul 2021 17:57:27 GMT

Social Security benefits are not taxed at the state level, but for federal they could be taxable up to 85% depending on your other income

https://www.ssa.gov/benefits/retirement/planner/taxes.html#:~:text=Income%20Taxes%20And%20Your%20Social%20Security%20Benefit,-Some%20of%20you&text=between%20%2425%2C000%20and%20%2434%2C000%2C%20you,your%20benefits%20may%20be%20taxable.

Re: Social Security & Taxes

Opus 17 — Thu, 15 Jul 2021 18:49:32 GMT

If you are at full retirement age, working will not reduce your SS benefit.

If your only income is social security, it's non-taxable. If you have any other income (investments, a job, lottery prize, etc.) then that income is taxable and your social security might also be taxable, depending on how much your other income is, using this formula

https://www.irs.gov/newsroom/dont-forget-social-security-benefits-may-be-taxable