topic Thanks in Retirement tax questions

In 2019, I am turning 62 years old and planning on retiring from work and applying for early Social Security benefits. What are my tax consequences?

fasteddie577 — Tue, 04 Jun 2019 20:10:00 GMT

Is my work retirement income and bank CD Interest going to affect my social security benefits? If so, what tax rate will I fall under? Does the tax rate fall under the IRS tax tables or is it calculated differently?

Also, it's my understanding from my Google research that my SS benefits could decrease if I decided to go back to work, but that the reduced social security benefits would be paid back to me when i reached full retirement age. Comments are appreciated.

That's an extremely complicated question and you should s...

Opus 17 — Tue, 04 Jun 2019 20:10:01 GMT

That's an extremely complicated question and you should see a tax planner.

Generally, if you are simply retired and collect social security, it is only taxable if you have other taxable income over a certain level. However, if you continue to work after declaring retirement, your SS benefits can be reduced as well as being taxable.

Thank you.

fasteddie577 — Tue, 04 Jun 2019 20:10:02 GMT

Thank you.

If you don't need the SS benefits immediately upon retire...

Texas Roger — Tue, 04 Jun 2019 20:10:04 GMT

If you don't need the SS benefits immediately upon retirement, a financial planner can also help you decide whether it is better to take your benefits at age 62 or let them grow to your full retirement benefit age or even longer before taking them.

What is the best way to locate a good financial planner?

fasteddie577 — Tue, 04 Jun 2019 20:10:05 GMT

What is the best way to locate a good financial planner?

Try asking friends or business associates.

Texas Roger — Tue, 04 Jun 2019 20:10:07 GMT

Try asking friends or business associates.

Thanks

fasteddie577 — Tue, 04 Jun 2019 20:10:08 GMT

Thanks

I would recommend that you seek guidance from a fee only...

re2boys — Tue, 04 Jun 2019 20:10:10 GMT

I would recommend that you seek guidance from a fee only financial adviser that is a fiduciary (puts your interests first). There are a lot of so called financial advisers out their that work on commissions and may put their interests before yours. A good place to start you search is <a rel="nofollow" target="_blank" href="https://www.napfa.org/">https://www.napfa.org/</a>

If I already know my social security and retirement incom...

fasteddie577 — Tue, 04 Jun 2019 20:10:11 GMT

If I already know my social security and retirement income and the amount of income if I were to go back to work, wouldn't just plugging in those numbers in my 2018 tax program give me an idea of what to expect as far as my future tax scenario would be? Maybe not to the penny but a reasonable estimate. Thanks

The program would not tell you how much if any your socia...

Texas Roger — Tue, 04 Jun 2019 20:10:12 GMT

The program would not tell you how much if any your social security benefits might be reduced if you went back to work.

Aren't these reduced social security benefits paid back t...

fasteddie577 — Tue, 04 Jun 2019 20:10:14 GMT

Aren't these reduced social security benefits paid back to you when you reach full retirement age? That is what I just read on the SS Website? Or did I misunderstand the information? Thanks

The reduction isn't directly paid back. What happens is...

dmertz — Tue, 04 Jun 2019 20:10:15 GMT

The reduction isn't directly paid back. What happens is that your monthly benefit is recalculated at full retirement age to account for the reduction in earlier benefits due to earnings, making your monthly benefit at full retirement age and beyond higher than it would have been had your earlier benefits not been reduced. If you live to average life expectancy the reduction is effectively paid back.

Thanks dmertz. Good to know that one get's it back.

fasteddie577 — Tue, 04 Jun 2019 20:10:17 GMT

Thanks dmertz. Good to know that one get's it back.

TAX ON SOCIAL SECURITY Up to 85% of your Social Security...

xmasbaby0 — Tue, 04 Jun 2019 20:10:21 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 is $16,920 —for 2018 it will be $17,040—for 2019 it will be $17,640) 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.

To see how much of your Social Security was taxable in 2018, look at lines 5a and 5b of your 1040.

https://ttlc.intuit.com/questions/1899144-is-my-social-security-income-taxable

Thanks.

fasteddie577 — Tue, 04 Jun 2019 20:10:22 GMT

Thanks.

Re: In 2019, I am turning 62 years old and planning on retiring from work and applying for early Social Security benefits. What are my tax consequences?

Rohit5343 — Wed, 29 Jan 2020 11:07:52 GMT

Specialists who have worked in "secured work" for a adequate number of a long time are qualified for retirement benefits when they resign at age 62. This, as a rule, implies you must have worked an add up to of at slightest ten a long time of work at a nongovernmental job. You may select to start accepting retirement benefits at any time after you reach age 62. In any case, there are motivations to hold up until your "full retirement age," which is between 65 and 67, depending on the year of your birth. The sum of your benefits will be forever decreased by a certain rate on the off chance that you start claiming them sometime recently you reach full retirement age. As an encouraging motivating force to keep working, the sum of your benefits will be somewhat, but for all time, expanded for each year you hold up until age 70 to put in your claim. Be that as it may, it doesn't continuously make sense to delay collecting your benefits (for more data, see In case I delay my retirement, will I get more cash from Social Security?). Moreover, no matter how long you hold up.

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