topic Social Security tax in Retirement tax questions

Social Security tax

wardtheo — Wed, 26 Jul 2023 16:29:10 GMT

I am planning to retire the first of 2024. If my Social Security payment is $32,000 per year and I don't take any of my retirement funds, What would be the tax on the SS. I will be 66 1/2 in January 2024.

Re: Social Security tax

ElizabethW2 — Wed, 26 Jul 2023 16:34:22 GMT

Good morning, wardtheo!

Congratulations on retirement!!

If social security benefits are your ONLY income, you will not have a tax liability (no tax due on the benefits and, frankly, no need to file a return).

However, if you have other income or are filing a joint return with your spouse that has other income, part of your social security benefits could become subject to tax. That depends on your filing status and how much income you have above the threshold. Below is a link that gives you the thresholds (scroll to the bottom to the section titled "Do I pay Social Security tax or income tax on my Social Security benefit payments?".

Regards,

Elizabeth W

EA for 29 years

Re: Social Security tax

LorenL1 — Wed, 26 Jul 2023 16:37:10 GMT

If you you file as an "individual" and your combined income is between $25,000 and $34,000, you may have to pay income tax on up to 40% of your benefits. To calculate your combined income:

Your adjusted gross income

+ Nontaxable interest

+1/2 of your Social Security benefits

= Your +combined income"

https://www.ssa.gov/benefits/retirement/planner/taxes.html