Yep. I'm 67, retired, but not planning to collect social until age 70. So, since I have no other taxable income coming in, I'm currently actively converting from a regular IRA to a ROTH IRA every year until age 70.
I retired a year-and-a-half ago, but I haven't filed for SS yet. My full retirement age will be coming up in a few months. The first strategy that you suggested was to use money from tax-delyed accounts BEFORE filing for SS. That was your clearest advice to lower SS taxes, and probably the ONLY strategy that I currently have available.
File early. I applied online about 4 months ago and just recieved my first call from the person investigating my application. That was 4 days ago and I haven't been able to get ahold of her since and am unable to get anywhere on the SS website.
Get Devin and his team to show you how to optimize your Social Security. Get started with a complimentary 15 minute phone call. Schedule at www.carrolladvisory.com/planning/
We owed federal taxes this year on my husband's social security. I found it very interesting when we signed into his SS account that there was no option (that I could find) to actually have taxes taken out each month.
You will have to do quarterly estimated tax payments to the IRS to avoid falling below the 90% withholding threshold of taxes due or risk being assessed a penalty in addition to the taxes owed.
Wrong, you can fill out a form to have various percentages held out each month. I did that a few years ago. You have to complete and sign and I brought mine to the local SS office.
@@wildcatfan9962 no, not wrong. You're correct that you can fill out a form, but that form wasn't available on his SSA account, at least back when he applied, and there was nothing about taxes being taken out.
@@brucesmith9144 after talking to our accountant, we were going to do quarterly taxes but decided to just have a set amount taken from his pension each month instead. As long as the IRS is getting it's money, they don't care which income it's take from.
@@johnkimdimeglio333 you are correct that the form is not on the account. I am not sure why that is not an option on our accounts and we have to find the form and fill it out. I have wrote my congressman and senator about reducing or eliminating this tax. At the very least, the income thresholds should be indexed for inflation, starting back when this started or the max taxable should be in the 25% range, not 85%.
Most people only make about 30k per year. Saving every dime put away 250k if the stock market doesn't crash. How about a real example for the working stiffs? It's going to be incredibly tight if I work to 70. My FRA is 66.6.
#budprepper, exactly. I can't think of any reason why a retired person would need $7000 monthly income. If they need $3000 per month for housing,they haven't properly planned for retirement.
I think the tips in this video are primarily applicable to those that had above average earnings while they were working (which results in above average SS benefits) and also have substantial savings or investments outside of retirement accounts.
@@diane-ketcham I know an old couple that live on $2,200 a month plus interest they have on an IRA. He told me they haven't touched their savings yet and they are 80
I am confused about this topic. I have seen that pensions do not count towards social security taxes. Then i saw pesions were accumulated together to determine social security earned income limits? Are pensions added with social security income to determine this threshhold or not
I don't think anybody should have to pay tax on social security we worked all our life to get what little bit we do get then they want to take some of that back we've already paid tax on that money once
It's not like taxing SS is a new idea - been around since Reagen - and, if your income is just a "little bit", primarily SS bens, you won't pay ANY fed income tax.
What you think doesn't matter to the IRS or the guvmnt if you haven't figured that out yet at your age Good Luck BTW I think the IRS should tax politicians worth over 5 million an extra 20% if they want to "serve" in office. LoL 😆
I agree with you Barbara. The thing is, we pay taxes on all money we earn while working. They are just double-dipping because we're having to pay taxes on what has already been taxed. So unfair. I did not realize I was going to lose my entire widow's benefit check when I retired from a state job after 30 years. Well, I was drawing $850 a month, and they took every penny of it because of the Windfall Elimination Act, which put me in a real bind. Of course, SS does not tell you if you retire from a State or Federal job you're screwed. That's how our wonderful system works. How unfair and what a joke.
Good, practical advice Devin, that piques my interest. You consistently recommend folks to sit down with a tax advisor for these strategies. I would be interested to know if any of the folks who say that none of this applied has met with a tax advisor. Thanks for your time!
It is not to difficult to listen to his videos and decide what does or does not apply to each person... this video, five specific strategies... if the issues he is talking about do not pertain to the viewer I am pretty sure they can accurately make that determination if they are aware of their own financial situation.... for many of us, with some retirement savings in 401K, IRA, etc., but nothing in non retirement accounts.... and past the point where it makes sense to convert anything to Roth,..... its a pretty easy determiantion. I for one, do not have a "tax advisor" nor do I have an "investment advisor". Our money is in Roth 401k's with a current employer, and Vanguard IRA Admiral Index and Mutual Funds. A few years I took my spreadsheets to a well respected and experienced Edward Jones rep - he basically told me there was not much he could for me, and that if I went with him his main goal would be just to make sure I did not lose money.
Just think the latest pay increase for congressional staffers tops out at over 250,000 per month. Wow great work if you can get it. It however shows how out of touch they are from the fly over region of the US.
When married filing jointly with pensions, interest and social security (gross annual) combined exceeds $118,100, will AMT apply? Or does AMT contemplate only the 50% (or 85%) taxable portion of social security?
@@tomcaldwell5750 Federal income tax and FICA taxes both use the employee’s gross wages as a starting point, and both taxes are calculated independently
Thank you, Devin. Harvesting losses is interesting and I look forward to researching the details. Another strategy with regard to stocks, if you do not need the income and to avoid capital gains, you can gift shares equivalent up to the maximum allowed in a given year. You pay zero tax. The persons or charities receiving the gift will be subject to capital gains based on the original price per share you paid and the sales price when they decide to exercise. This needs to be disclosed carefully so they understand. However, it is a gift for which they made no initial investment. To them it will have a net value benefit. Example $15,000 in stock value exercised by the receiver will be taxed. They just need to remember they will not have $15,000. They need to hold back sufficient funds from the sale to pay the estimated tax, but the balance is theirs to enjoy.
I am not an expert, and am truly trying to understand.... are you saying giving your money away to someone else (gift) which lowers your taxes but also lower your net worth is a good idea?
@@MrALBOBALBOB I get where you are coming from but if you can, yes. As I qualified, “if you don’t need the income”. It’s a generous way to share. But if you want or need to spend it yourself, you should. Keep in mind your sales price (assuming it is higher than your initial purchase price) may be subject to capital gains tax, so the net realization of your investment may feel somewhat disappointing.
@@MrALBOBALBOB In his example, the individual gives $10,000 to his church each year, and Devin then explains there is a more tax-efficient way to give the $10,000 through a QCD. I don’t think anyone can ever make more money by giving money away. You can only give money away in a more tax-efficient manner. In this example, the net worth would be higher through a QCD than by giving the same amount from after tax savings.
I have my retirement from the Airforce set at $1,180 - 10 % (VA) which is non-taxable = 1,027.36 currently, then i would have Social Security, accuring a FERS pension to be $453 monthly in Jan23 i am 62 and still working in FERS
In the first example, you say wait until 70 to file for SS and take out the balance from your IRA to save 22% in taxes, but you didn't say where the money was coming from during that 3yrs your waiting for the max payout?
Really powerful tools to consider at the appropriate time. No telling how the law may change before I plan to claim in a dozen years given the current state of the SS trust fund.
Stopped working at 55, was going to apply for my SS at 62. After some analysis I discovered applying early was not the best strategy for a healthy adult. The most tax efficient strategy was to wait until 70 and withdraw from my 401k and IRA first. I depleted my 401k and then withdrew from my IRA. I have withdrawn all my own money out of my IRA. With all the good years in the market I still have 175% more in my IRA than when I stopped working.at my COJ. I am playing the market with house money. I do have a question Devin it involves spousal benefits, it is half of your FRA but does the spousal benefit receive the cola also like your FRA does? Thank you.
So when my pay check was taxed originally, now I'm taxed again. Like when I bought my house I am still paying tax on it and yet they raised my property tax in this economy by 33%?!! Are they insane!@!
This video is obviously only for wealthy seniors. With $7000/mo you could live like a king. He makes it sound like they'll be in due straits. Don't worry about taxes, eliminate unnecessary expenses. Don't own so much that isn't paid for.
That’s just 1 thing, 70 is pretty old, and we should enjoy our money and not wait until we are old to use it. It’s just suck that SS is taxed at all, it should be based on income below $100,000 per year. NYC is expensive, and we need 40k per year + more for travel.
In terms of reducing social security taxation. I assume SSN obtains your IRS Form 1040 information to see your adjusted gross income. If so, how far back does SSN look at your IRS Form 1040, to calculate your SSN taxation?
It is done in the current filing year, no look back. All is based on what you may in the tax year, I.e 2022. There is an online of the SS website where you and plug in your numbers to get see how it will effect you.
I am on Social Security disability and SSI and I have never had to worry about paying any taxes because my income is so low. Is this something I'm going to have to worry about in the near future?
So simple. By your first example all I have to do is work three more years and sacrifice my quality of life, potentially lowering my life expectancy due to stress in the workplace. Genius.
In the first example you say to wait 3 years to take SS. That will be a 3 year loss of $108,000!! When you turn 70 you will gain $720 a month and that will take you 12.5 YEARS to make up!! You will be (if you live that long) 82.5 yrs old just to break even and that does not include investing any of that SS money which would take you even longer to break even! This seems like the worst advice ever!! Especially if one takes into account what could happen to SS in the future(bankrupt?)
This has always been my argument & no one seems to counter it effectively. SS is based on actuary tables. Eliminating Covid's impact the average life span of a male in the US is 78 years.
I am with you. I ran the numbers and retired at 62 and started social security. One main reason is, I wanted to retire and if I started pulling from investments instead of social security, then that drains them more than I liked, and if I died before drawing, all the social security money is gone forever. Spouse only gets the greater of the two benefits and if not married the kids get nothing, whereas, since I took social security, my IRA has grown a ton and if I die the kids get a heck of a lot more (I am a widow). So take it when you want to retire and enjoy the heck out of what we have left of this life.
I like this channel, its very informative but, I dont know anyone who makes the kind of money that is talked about here. After a life of work with a bunch of worn out joints Ive found that when I finally give it up at 64.5 I will be signing up for congressionally mandated poverty.
of course devins response is accurate... but just another comment : "people say" all sorts of things about SS that are either not completely true or 100% false. Everyone who gets a SS benefit is "subject" to that benefit being taxed, regardless if they are 62, 67, 70, 80, etc. If SS is their only source of income, it is doubtfull they will pay any Fed Inc Tax. If they have other sources of income, such as pensions or money being withdrawn from retirement or investmenet accounts, it is likely they will have to pay some tax on SS earnings, and it does not take much in earning to quickly get to the point where the max 85% of SS is taxable.
@@MrALBOBALBOB that’s not entirely accurate. First, if Social Security is your only source of income then you will NOT have to pay tax on it. If a married couple is both getting the maximum, call it $3500 per month each, that is $84,000 per year. Half of that is $42,000, so only $5,000 of their Social Security would be taxable. And their standard deduction would cover that. Secondly, it actually takes quite a bit of other income to have to pay tax on your benefits. The same couple, if they had an RMD of $10,000 would make their combined income $52,000. The first $32,000 of this would be tax free. The next $12,000 would be counted at 50% or $6,000. The last $8,000 would be counted at 85%, so $6,800. Their total taxable Social Security would be $12,800. Add that to their RMD and their total reportable income is $22,800. Their standard deduction would cover that and they would owe no tax on $92,000 of income. Considering that the average Social Security benefit is $1555 per month , even doubling that for a married couple means they would get less than $37,000 per year. So, they could have $13,500 of other income before the first dollar of their Social Security would be counted towards taxation. If they had a Roth IRA, they could supplement their other income and have a large retirement income with no taxes at all.
@@youngtimer964 And where did you see that survey? When you don't cite your source, other than just saying "I saw a survey" you are on the same slippery slope as "people say".
What I believe that means is that you can't withdraw that money before it is there for 5 years or you will be penalized for doing so. It's not a good idea if you will need the money withing 5 years. Plus you will have to pay taxes on the amount that you convert in the year you do so.
The five year rule on conversions only applies if you are under 59 and 1/2. If you have had any Roth IRA open for at least five years and you are over 59 and 1/2, then all distributions are qualified and tax free. That’s straight from the IRS.
Hello Devin, hope all is well with you sir! Still haven't heard a response from you nor your team, concerning my situation! Anyway, take care sir! Best regards!
I’m a 69 year old retired veteran. I receive retirement pension, social security and disability is there an age where I would stop paying taxes. Oh yes my. Wife is younger but only makes 20k a year.
You already passed the age (65) that means anything to the IRS as far as filing income tax is concerned. Whether or not you pay income tax depends on your modified adjusted gross income. With your wife's income being so low, you should take your numbers to your tax advisor and see if you should file separately instead of jointly for 2022. You might even be able to claim her as a dependent, but definitely see your tax advisor (hopefully not H&R Block).
None of this stuff applies to me. I have only my SSI and a small Widows Benefit of $375 a month so nothing I get is taxable and this has been since I retired. I dove below the poverty line and just make do and skrimp and save and buy only what I need and work a few craft shows to get a little pocket money.
@@carrottop7802 did you watch the video??? - which of the five steps can help you, or anyone else without a lot of investement income, reduce their taxes?
Don't sleep on it...this is a time to invest I recently just bought another property valued at over $10m. I wish I knew the right investment firm to invest with earlier, better late than never thought.
the government would greatly increase the tax dollar by implementing a flat tax of 15% on every dollar made including the multibillion-dollar business the ones who pay just 1% on earnings when the income workers are paying up to 23% in income taxes.
The very idea of taxing Social Security is outrageous. It wasn't taxed until Reagan - the President who began the all out assault on the working class both before and after retirement.
OK, give my retirement to a church or my daughters/sons ??? G my grand kids will enjoy it. The church does not need it as a tax payers with bills to pay would..
Contributions to churches should NOT be classed as charitable contributions. Also, thank you Ronald Reagan for causing such misery to low income retirees, disabled and poor. If you cannot afford lobbyists, attorneys or CPA’s in America, you are screwed.
Biden administration has caused fuel to double, groceries to be up by 38%, utilities to be up by 60%, taxes to go thru the roof, now he's talking about making us stay home on Sundays to "save the planet" yet you are whining not about Clinton, Obama, Obamacare, this administration but Reagen. Truly you should study more.
I THINK YOU SHOULDNT HAVE TO PAY TAXES AFTER YOU RETIRE SINCE YOU HAVE PAID ALL YOUR ADULT LIFE....I KNOW.. UNICORNS IN THE BACK YARD FARTING RAINBOWS...
The ignorance of our forefathers or who ever allowed for Uncle Sam take your wages & make no promise or guarantee you will get any of it back. Then the insurance that you need at that age you have to wait 2 years & pay for parts as add ons. No authority in the investments made or the ability to reclaim lost wages. But the over the top tactic of TAXES I paid with my earnings on paycheck for my labor already, but it is taxed again. How about you give we the people options being the fact it is our wages & without our labor you would not exist. No one can take your wages without written consent, I didn't sign up for this, I want out!
Yep. I'm 67, retired, but not planning to collect social until age 70. So, since I have no other taxable income coming in, I'm currently actively converting from a regular IRA to a ROTH IRA every year until age 70.
I retired a year-and-a-half ago, but I haven't filed for SS yet. My full retirement age will be coming up in a few months.
The first strategy that you suggested was to use money from tax-delyed accounts BEFORE filing for SS. That was your clearest advice to lower SS taxes, and probably the ONLY strategy that I currently have available.
File early. I applied online about 4 months ago and just recieved my first call from the
person investigating my application. That was 4 days ago and I haven't been able to get
ahold of her since and am unable to get anywhere on the SS website.
Get Devin and his team to show you how to optimize your Social Security. Get started with a complimentary 15 minute phone call. Schedule at www.carrolladvisory.com/planning/
We owed federal taxes this year on my husband's social security. I found it very interesting when we signed into his SS account that there was no option (that I could find) to actually have taxes taken out each month.
You will have to do quarterly estimated tax payments to the IRS to avoid falling below the 90% withholding threshold of taxes due or risk being assessed a penalty in addition to the taxes owed.
Wrong, you can fill out a form to have various percentages held out each month. I did that a few years ago. You have to complete and sign and I brought mine to the local SS office.
@@wildcatfan9962 no, not wrong. You're correct that you can fill out a form, but that form wasn't available on his SSA account, at least back when he applied, and there was nothing about taxes being taken out.
@@brucesmith9144 after talking to our accountant, we were going to do quarterly taxes but decided to just have a set amount taken from his pension each month instead. As long as the IRS is getting it's money, they don't care which income it's take from.
@@johnkimdimeglio333 you are correct that the form is not on the account. I am not sure why that is not an option on our accounts and we have to find the form and fill it out. I have wrote my congressman and senator about reducing or eliminating this tax. At the very least, the income thresholds should be indexed for inflation, starting back when this started or the max taxable should be in the 25% range, not 85%.
Most people only make about 30k per year. Saving every dime put away 250k if the stock market doesn't crash. How about a real example for the working stiffs? It's going to be incredibly tight if I work to 70. My FRA is 66.6.
Wouldn't it be cool if they just eliminated the income tax? Along with elimnating 90% of the federal government, I think that would work for me!
I'm with you 💯 percent
Since the defense budget represents about half, are you okay with dumping that?
"You think?"... Doubtful
@@youngtimer964 yes but of course that would mean no more great victories in countries like Iraq, Afghanistan, etc.
NESARA.
Who needs $7k a month to live on? I never even earned that while working?!
#budprepper, exactly. I can't think of any reason why a retired person would need $7000 monthly income. If they need $3000 per month for housing,they haven't properly planned for retirement.
Just an example
I think the tips in this video are primarily applicable to those that had above average earnings while they were working (which results in above average SS benefits) and also have substantial savings or investments outside of retirement accounts.
People who live in the northeastern part of the US or California.
@@diane-ketcham I know an old couple that live on $2,200 a month plus interest they have on an IRA. He told me they haven't touched their savings yet and they are 80
I am confused about this topic. I have seen that pensions do not count towards social security taxes. Then i saw pesions were accumulated together to determine social security earned income limits? Are pensions added with social security income to determine this threshhold or not
Yes. The only income you exclude is income from Roth IRAs. Tell all the young folks you know, as I do, max out a Roth every year.
my hubby is actually making more retired than when he was working, as he was in a union.
Devin, question is do we have to pay into medicare which is subtracted from SSN?
I don't think anybody should have to pay tax on social security we worked all our life to get what little bit we do get then they want to take some of that back we've already paid tax on that money once
It's not like taxing SS is a new idea - been around since Reagen - and, if your income is just a "little bit", primarily SS bens, you won't pay ANY fed income tax.
So it's ok for someone who earns $500K per year in investments, plus collects SS to not pay taxes on the SS part? That wouldn't be right.
What you think doesn't matter to the IRS or the guvmnt if you haven't figured that out yet at your age Good Luck BTW I think the IRS should tax politicians worth over 5 million an extra 20% if they want to "serve" in office. LoL 😆
I like paying taxes... I also ike to bleed out of my ears and eyes at any given party I go to..
I agree with you Barbara. The thing is, we pay taxes on all money we earn while working. They are just double-dipping because we're having to pay taxes on what has already been taxed. So unfair. I did not realize I was going to lose my entire widow's benefit check when I retired from a state job after 30 years. Well, I was drawing $850 a month, and they took every penny of it because of the Windfall Elimination Act, which put me in a real bind. Of course, SS does not tell you if you retire from a State or Federal job you're screwed. That's how our wonderful system works. How unfair and what a joke.
Good, practical advice Devin, that piques my interest. You consistently recommend folks to sit down with a tax advisor for these strategies. I would be interested to know if any of the folks who say that none of this applied has met with a tax advisor. Thanks for your time!
It is not to difficult to listen to his videos and decide what does or does not apply to each person... this video, five specific strategies... if the issues he is talking about do not pertain to the viewer I am pretty sure they can accurately make that determination if they are aware of their own financial situation.... for many of us, with some retirement savings in 401K, IRA, etc., but nothing in non retirement accounts.... and past the point where it makes sense to convert anything to Roth,..... its a pretty easy determiantion. I for one, do not have a "tax advisor" nor do I have an "investment advisor". Our money is in Roth 401k's with a current employer, and Vanguard IRA Admiral Index and Mutual Funds. A few years I took my spreadsheets to a well respected and experienced Edward Jones rep - he basically told me there was not much he could for me, and that if I went with him his main goal would be just to make sure I did not lose money.
Devin, can you do one for people who only have social security and a $1,000 per mo side job?
Devin, you are amazing! You have helped me a lot.
Info incomplete in delaying until 70 yo. What about the money collected for 3 years 3000 x 36 = $108,000 you could have invested on good index?
Just think the latest pay increase for congressional staffers tops out at over 250,000 per month. Wow great work if you can get it. It however shows how out of touch they are from the fly over region of the US.
When married filing jointly with pensions, interest and social security (gross annual) combined exceeds $118,100, will AMT apply? Or does AMT contemplate only the 50% (or 85%) taxable portion of social security?
We already paid taxes on SS all the years we worked..why would we pay again?
If I am not mistaken, social security deduction is pre-tax. Meaning you don't pay income tax on the amount deducted for social security.
You paid the SS tax which funds the program. You could not have paid taxes on SS because you did not yet receive it.
EmployEE contributions to Social Security are paid AFTER tax so many recipients don’t like paying income taxes on the benefits.
@@tomcaldwell5750 you are mistaken. The tax you pay in FICA Taxes are on gross income, before tax.
@@tomcaldwell5750 Federal income tax and FICA taxes both use the employee’s gross wages as a starting point, and both taxes are calculated independently
I can not follow all this. What would you charge to consult on an individual situation?
Thank you, Devin. Harvesting losses is interesting and I look forward to researching the details. Another strategy with regard to stocks, if you do not need the income and to avoid capital gains, you can gift shares equivalent up to the maximum allowed in a given year. You pay zero tax. The persons or charities receiving the gift will be subject to capital gains based on the original price per share you paid and the sales price when they decide to exercise. This needs to be disclosed carefully so they understand. However, it is a gift for which they made no initial investment. To them it will have a net value benefit. Example $15,000 in stock value exercised by the receiver will be taxed. They just need to remember they will not have $15,000. They need to hold back sufficient funds from the sale to pay the estimated tax, but the balance is theirs to enjoy.
I am not an expert, and am truly trying to understand.... are you saying giving your money away to someone else (gift) which lowers your taxes but also lower your net worth is a good idea?
@@MrALBOBALBOB I get where you are coming from but if you can, yes. As I qualified, “if you don’t need the income”. It’s a generous way to share. But if you want or need to spend it yourself, you should. Keep in mind your sales price (assuming it is higher than your initial purchase price) may be subject to capital gains tax, so the net realization of your investment may feel somewhat disappointing.
@@MrALBOBALBOB In his example, the individual gives $10,000 to his church each year, and Devin then explains there is a more tax-efficient way to give the $10,000 through a QCD.
I don’t think anyone can ever make more money by giving money away.
You can only give money away in a more tax-efficient manner.
In this example, the net worth would be higher through a QCD than by giving the same amount from after tax savings.
I have my retirement from the Airforce set at $1,180 - 10 % (VA) which is non-taxable = 1,027.36 currently, then i would have Social Security, accuring a FERS pension to be $453 monthly in Jan23 i am 62 and still working in FERS
In the first example, you say wait until 70 to file for SS and take out the balance from your IRA to save 22% in taxes, but you didn't say where the money was coming from during that 3yrs your waiting for the max payout?
Really powerful tools to consider at the appropriate time. No telling how the law may change before I plan to claim in a dozen years given the current state of the SS trust fund.
Seems like they punish you for future gains while retired and drawing SS. 🤔
Not any more than someone earning regular income.
Thank you so much research.
Stopped working at 55, was going to apply for my SS at 62. After some analysis I discovered applying early was not the best strategy for a healthy adult. The most tax efficient strategy was to wait until 70 and withdraw from my 401k and IRA first. I depleted my 401k and then withdrew from my IRA. I have withdrawn all my own money out of my IRA. With all the good years in the market I still have 175% more in my IRA than when I stopped working.at my COJ. I am playing the market with house money. I do have a question Devin it involves spousal benefits, it is half of your FRA but does the spousal benefit receive the cola also like your FRA does? Thank you.
SS will hate you if you live to 100 years old! haha
If I wasn’t already confused about my IRA and taxes in conjunction with SS application, I am now. 😞😵💫
Keep doing your research and you’ll figure it out…GL
Thank you, keep up the good work.
IRS PUBLICATION 915 is helpful!
Thanks for sharing the information !
Thanks for watching!
Hi Devin, I'm already having volunteered taxes deducting from my Social Security Benefits.
So?
Don't understanding this with my add disability. Dose this includes with on ssi social security & drawing off there patent
So when my pay check was taxed originally, now I'm taxed again. Like when I bought my house I am still paying tax on it and yet they raised my property tax in this economy by 33%?!! Are they insane!@!
Joe Biden thought it was a great idea in 1983. Always looking out for the working man …old Lunch pail Joe…
@@golferpro1241 bi-partisan
I take 2 pensions, plus ss this doesn't help me
This video is obviously only for wealthy seniors. With $7000/mo you could live like a king. He makes it sound like they'll be in due straits. Don't worry about taxes, eliminate unnecessary expenses. Don't own so much that isn't paid for.
That’s just 1 thing, 70 is pretty old, and we should enjoy our money and not wait until we are old to use it.
It’s just suck that SS is taxed at all, it should be based on income below $100,000 per year. NYC is expensive, and we need 40k per year + more for travel.
In terms of reducing social security taxation. I assume SSN obtains your IRS Form 1040 information to see your adjusted gross income. If so, how far back does SSN look at your IRS Form 1040, to calculate your SSN taxation?
It is done in the current filing year, no look back. All is based on what you may in the tax year, I.e 2022. There is an online of the SS website where you and plug in your numbers to get see how it will effect you.
I am on Social Security disability and SSI and I have never had to worry about paying any taxes because my income is so low. Is this something I'm going to have to worry about in the near future?
This does not apply to disability income
@@wildcatfan9962It applies to SS Disability
So simple. By your first example all I have to do is work three more years and sacrifice my quality of life, potentially lowering my life expectancy due to stress in the workplace. Genius.
In the first example you say to wait 3 years to take SS. That will be a 3 year loss of $108,000!! When you turn 70 you will gain $720 a month and that will take you 12.5 YEARS to make up!! You will be (if you live that long) 82.5 yrs old just to break even and that does not include investing any of that SS money which would take you even longer to break even! This seems like the worst advice ever!! Especially if one takes into account what could happen to SS in the future(bankrupt?)
This has always been my argument & no one seems to counter it effectively. SS is based on actuary tables. Eliminating Covid's impact the average life span of a male in the US is 78 years.
I am with you. I ran the numbers and retired at 62 and started social security. One main reason is, I wanted to retire and if I started pulling from investments instead of social security, then that drains them more than I liked, and if I died before drawing, all the social security money is gone forever. Spouse only gets the greater of the two benefits and if not married the kids get nothing, whereas, since I took social security, my IRA has grown a ton and if I die the kids get a heck of a lot more (I am a widow). So take it when you want to retire and enjoy the heck out of what we have left of this life.
Maybe a better picture is most of us that will MAYBE draw 1900/mo IF WE CAN MAKE IT TO 70.
If you make it to 62 you have a 80% possibility to make it to over 80 years old.
Good Afternoon, Does military retirement count towards provisional income?
My question as well.. did you ever find an answer?
@@rhosk no reply/answer yet!
I like this channel, its very informative but, I dont know anyone who makes the kind of money that is talked about here.
After a life of work with a bunch of worn out joints Ive found that when I finally give it up at 64.5 I will be signing up for congressionally mandated poverty.
None of this information is helping me.
Thank you Sir
I’m confused. Why do I hear so many people say at full retirement age you don’t have taxes on your social security benefit?
It's the earning's limit that doesn't apply at full retirement age.
of course devins response is accurate... but just another comment : "people say" all sorts of things about SS that are either not completely true or 100% false. Everyone who gets a SS benefit is "subject" to that benefit being taxed, regardless if they are 62, 67, 70, 80, etc. If SS is their only source of income, it is doubtfull they will pay any Fed Inc Tax. If they have other sources of income, such as pensions or money being withdrawn from retirement or investmenet accounts, it is likely they will have to pay some tax on SS earnings, and it does not take much in earning to quickly get to the point where the max 85% of SS is taxable.
@@MrALBOBALBOB that’s not entirely accurate. First, if Social Security is your only source of income then you will NOT have to pay tax on it. If a married couple is both getting the maximum, call it $3500 per month each, that is $84,000 per year. Half of that is $42,000, so only $5,000 of their Social Security would be taxable. And their standard deduction would cover that. Secondly, it actually takes quite a bit of other income to have to pay tax on your benefits. The same couple, if they had an RMD of $10,000 would make their combined income $52,000. The first $32,000 of this would be tax free. The next $12,000 would be counted at 50% or $6,000. The last $8,000 would be counted at 85%, so $6,800. Their total taxable Social Security would be $12,800. Add that to their RMD and their total reportable income is $22,800. Their standard deduction would cover that and they would owe no tax on $92,000 of income. Considering that the average Social Security benefit is $1555 per month , even doubling that for a married couple means they would get less than $37,000 per year. So, they could have $13,500 of other income before the first dollar of their Social Security would be counted towards taxation. If they had a Roth IRA, they could supplement their other income and have a large retirement income with no taxes at all.
@@MrALBOBALBOB to your point of “people say”, I saw a survey that showed 40+% of Americans that think everyone on SS gets the same amount. Omg
@@youngtimer964 And where did you see that survey? When you don't cite your source, other than just saying "I saw a survey" you are on the same slippery slope as "people say".
It sounds like the 5-year Roth conversion rule only applies to those age 59 1/2 and younger. So my being 61 means the 5-year rule doesn't apply?
What I believe that means is that you can't withdraw that money before it is there for 5 years or you will be penalized for doing so. It's not a good idea if you will need the money withing 5 years. Plus you will have to pay taxes on the amount that you convert in the year you do so.
The five year rule on conversions only applies if you are under 59 and 1/2. If you have had any Roth IRA open for at least five years and you are over 59 and 1/2, then all distributions are qualified and tax free. That’s straight from the IRS.
Hello Devin, hope all is well with you sir! Still haven't heard a response from you nor your team, concerning my situation! Anyway, take care sir! Best regards!
I’m a 69 year old retired veteran. I receive retirement pension, social security and disability is there an age where I would stop paying taxes. Oh yes my. Wife is younger but only makes 20k a year.
You already passed the age (65) that means anything to the IRS as far as filing income tax is concerned. Whether or not you pay income tax depends on your modified adjusted gross income. With your wife's income being so low, you should take your numbers to your tax advisor and see if you should file separately instead of jointly for 2022. You might even be able to claim her as a dependent, but definitely see your tax advisor (hopefully not H&R Block).
@@buyerbware25 you cannot file “individually “ if you are married.
Joint or married filing separate , very very rarely is it beneficial to do that.
None of this stuff applies to me. I have only my SSI and a small Widows Benefit of $375 a month so nothing I get is taxable and this has been since I retired. I dove below the poverty line and just make do and skrimp and save and buy only what I need and work a few craft shows to get a little pocket money.
This must be for rich folks. I get below 1200.00 monthly. What about folks like me.
If the $14,400 per year is all or most of your income, it is doubtfull you will pay any federal tax
It's not information for "rich" folks. It's information for hard working people who planned for their retirement. Now we get punnished with taxes.
@@carrottop7802 did you watch the video??? - which of the five steps can help you, or anyone else without a lot of investement income, reduce their taxes?
Agreed. 7000 a month spending? I can live on that for 4 months. Easy.
@@MrALBOBALBOB thank you would like to know the amount that would obligate you to pay taxes.
Item 3. If you have no gains I would just sell 3k worth of losses, especially if you think the stock will recover.
Don't sleep on it...this is a time to invest I recently just bought another property valued at over $10m. I wish I knew the right investment firm to invest with earlier, better late than never thought.
Contact Maxine Waters , she is a multi millionaire congresswoman
She’ll help you
None of these 5 strategies work for me.
the government would greatly increase the tax dollar by implementing a flat tax of 15% on every dollar made including the multibillion-dollar business the ones who pay just 1% on earnings when the income workers are paying up to 23% in income taxes.
The very idea of taxing Social Security is outrageous. It wasn't taxed until Reagan - the President who began the all out assault on the working class both before and after retirement.
OK, give my retirement to a church or my daughters/sons ??? G my grand kids will enjoy it. The church does not need it as a tax payers with bills to pay would..
Interesting how we pay a Tax all our working life and then receive those supposed benefits only to be taxed Again! Our system SUCKS!!!!!
Joe Biden had the idea of taxing Social Security in the 90’s. He’s always been looking out for you…….
Get real man, 90 % of us do not have that kind of money
Funny how you are responsible for taxes on money they take in taxes from you in the first place🤔
Contributions to churches should NOT be classed as charitable contributions. Also, thank you Ronald Reagan for causing such misery to low income retirees, disabled and poor. If you cannot afford lobbyists, attorneys or CPA’s in America, you are screwed.
Low income retirees dont pay tax on social security.
KB KatherineB " Contributions to churches should NOT be classed as charitable contributions" Why?
Right! Lets leave the Gipper out of this discussion.
Then go live in another country. I hear Putin is very sympathetic to your concerns.
Biden administration has caused fuel to double, groceries to be up by 38%, utilities to be up by 60%, taxes to go thru the roof, now he's talking about making us stay home on Sundays to "save the planet" yet you are whining not about Clinton, Obama, Obamacare, this administration but Reagen. Truly you should study more.
🤓👌🖖👍✌😎
I THINK YOU SHOULDNT HAVE TO PAY TAXES AFTER YOU RETIRE SINCE YOU HAVE PAID ALL YOUR ADULT LIFE....I KNOW.. UNICORNS IN THE BACK YARD FARTING RAINBOWS...
The ignorance of our forefathers or who ever allowed for Uncle Sam take your wages & make no promise or guarantee you will get any of it back. Then the insurance that you need at that age you have to wait 2 years & pay for parts as add ons. No authority in the investments made or the ability to reclaim lost wages. But the over the top tactic of TAXES I paid with my earnings on paycheck for my labor already, but it is taxed again. How about you give we the people options being the fact it is our wages & without our labor you would not exist. No one can take your wages without written consent, I didn't sign up for this, I want out!
The SCAMMERS target this channel