@@SandfordSmythe It would be double taxation for Roth distributions, but not double taxation for Social Security distributions? Social Security is only taxed because it is an easier target than Roth’s. The taxed portion of Roth’s is minuscule compared to Social Security. Of course, beneficiaries feel robbed with such inequitable treatment and their treatment should not be minimized.
No, it shouldn't be taxable. Why? Because I can remember when it wasn't, though the implications weren't clear to me then. It was still early in my work career. Then again, I can remember when my full retirement age was 64 and 6 months. Then they added to years to it (which is technically a default). Heck, I can remember reading an article in Reader's Digest by the late Sen. Barry Goldwater, stating that penalizing early retirees for working while collecting SS benefits was robbing them of their benefits. I think it was called "The Social Security Rule That Robs American Seniors". In hindsight, I have to agree. But to the point, tax my work earnings, tax my taxable investments but don't tax my social security income.
Wrong. You are thinking about your SS taxes as though they went into a personal account you draw from. 7.5 years is all most workers have to draw and they are ahead of their lifetime SS taxes paid. In other words, you are receiving money after that point you never paid taxes on.
Great video. Easy to understand. Example helps a lot. Learning more now as close in on taking SS. Realizing a big part is subject to taxes is depressing. But such is life. Learn and plan accordingly.
We’ve already been taxed on these benefits-I do not think that SS should be taxed. Thank you so much for your clear explanation and examples. It sounded simple to figure out but with regard to the IRS I always doubt myself. Because I’m married I’m ‘penalized’ because of my husband’s income! We are becoming more and more financially disadvantaged by marrying.
Good video. I live an SS and a military pension so it’s fairly easy to calculate how much federal withholding to pay on my pension. I try to get as close to zero on my income tax return as I can. Got pretty close this year. Still, taxing SS at all is unfair. I know the trust fund is in trouble but Congress is sitting on their thumbs and not doing anything to solve the problem.
We ended at 4:57 with the couple has $23,800 of taxable income. However with the 2023 standard deduction of $27,700 that leaves them owing no taxes at all right?
If you made $5/hr for 50 years and invested 12.5% of your income at 8% return it would yield $2,222/month for 30 years. In other words your social security has already been taxed.
There also seems to be a marriage penalty for filing jointly. You take $25,000 deduction when single but, you only take $34,000 when married. On what occasion is it better to file married filing separately? It seems to be that when one spouse makes a lot more money
David, this was helpful. Not collecting SS yet but anticipated 85% of total social security was taxable. Not the 3 bands (0%/50%/85%) on 1/2 SS plus other income. In other words with your example, I thought 85% of $40,000 was taxable. This would be $34,000, plus $52,000 of other income, or total taxable amount of $86,000. Certainly different equation. I am happy to know I over projected our taxes.
5:02 seems like a weighted statement. The percentage to SS, but not considering their other income and its affect on the result is a confusing statement. Just my 2 cents which is 75% of my combined, inflation and SS adjusted, taxable income...this year.
Hi from WA State: SS should not be taxable if total income is at the poverty line. For income above the poverty line, it should be taxed at the regular rate. I would like to see a decrease tax adjustment for seniors whos income is below 100,000 year.
My question is before your combined income is added to the social security table do you first account for the standard deduction which i believe is 12,000 something just under 13
I'm confused. In the table at 4:54 you subtracted 44,000 from the total income of 72,00 to determine the taxable income. The 85% taxable portion should be using the social security income of 40,000 minus some amount, not 72,000 total income minus 44,000. I understand how the 0% and 50% amounts are determined, but I don't understand what the correct 85% value should be.
First, the deductions from our paycheck did not reduce our taxable income at the time. Therefore, our SS earnings based on those earlier payroll deductions should not be taxed. Failing that, the government should make a little attempt to be fairer by at least indexing these taxable earnings for inflation.
No! Why? Haven't we and our employers already been taxed on it once when we earned it, and if you think about it when we had to file taxes on it at end of year. They need to concentrate on paying our money back with interest and leave our money alone. Thanks for the videos😊
@@ws775 Social Security should be tax free just like Roth retirement distributions are tax free. It’s ridiculous to tax Social Security when Roth distributions are tax free.
They already tax Social Security when I did mortgages we were able to add an extra 20 or 25% onto people that were drawing Social Security and having a mortgage so they do it on the slide but they don’t tell you that they do it
Hello, quick question, I am a 62 yo retired Federal employee. I get a monthly annuity and have Federal tax taken out of that. My wife still works and has Federal tax (10%) taken out each paycheck. This past year we got a Federal tax refund of over $2k. Since I turned 62 two months ago, my SSA Supplement ended. Starting this month I will begin receiving my Social Security benefit payment which works out to be about $700 more than my SSA supplement was per month. My question is, since my wife and I received a good amount from last years Federal tax return, am I required regardless to have additional Federal tax taken out of my Social Security benefit even if I think we are paying adequate Federal Taxes on our income? Thank you.
Would severance compensation count as income? I recently received in 2021 Severance for an early retirement incentive package which I had rolled over directly, (pre Tax) into my qualified 457b (deferred compensation) account. ?? Soc. Sec. now says I was over paid by them. I was retired for the entire remaining months in 2021. Seems wrong to me!?!? This was not earned income .... What say you?
Should Social Security income be taxable? No. Call should other forms of income be taxable in retirement? Possibly, and they should be index, or adjusted in favor of the retiree based on inflation.
This is applicable only if both are retired correct or does the same formula apply if one is still earning income, 70,000 and the other receives 2500 a month before taxes in social security retirement income.
No, I don't think SS should be taxed. The fact that it is brings up another question; Two married adults working full time til SS eligible. Would they be better off if they divorced since their retirement benefits are in completely different investment accounts?
Devin a question ❓ the tables you showed are those amounts before or after your AGI is figured out??? I've NEVER heard this explained. THANKS ☺️ Frank from Tennessee.
No tax on social security income. Our tax system is proof when our government gets involved bad things happen and we the people aren't happy about it. Thanks for being around to help though
I am 58 as of Oct 2022. I'm am on ssdi. I was married over 20 yrs then separated. She worked all her life an passed at age 50. What happens now should I leave it as is or is there a better way.
Can you clarify when you find yourself in the threshold where 50 or 85% of your benefit will be taxable. We are only using half the benefit for that calculation. But on our actual tax return we must enter the full amount of social security. Does that mean that whole SS amount will be taxable at that level even though the threshold calculation only requires half to determine which level of taxation? I haven't filed for Social Security yet so I don't know if we only need to enter half the amount on the tax return or if the whole amount is entered and becomes part of the AGI. Lastly, how does the deduction play into this. I am used to the taxes being determined after subtracting the standard deduction . When collecting Social Security does it change the effective rate? Will you continue to be taxed at the higher threshold rate even if your deduction brings down the incometo a lower number?
Dear Devin. I strongly believe social security taxation is not fair because we already pay taxes when we earned and contribute to it. Cost of leaving is killing us
My spouse wants to file taxes separately and did so last year. No convincing him to change. how do I figure what part of my SS and other income is taxable?
If 50% percent of social security is taxable according to my combined income. 50% is considered for income. Are we taxed on the total ss amount received or 50% that was determined to be combined income? Thank you! Great show as always!
Devin my Name is Dawn I'm on social security I'm in Texas we do not taxes on SSI or SSDI in Social security because it's already taken out so no it's not taxable.it like if person supposed get$841 they only get SSI $64.67 if you get SSDI it said person supposed get $774 in SSDI award letter said you get $496 but you get only $453 explain that!!!
@@davidcarbery2388 right, they could make an additional 20+K before any taxes due. My husband and I won't have much beyond SS, but it should be enough. Even including RMDs from our 401K, we won't have to pay fed taxes.
I thought taxable income was "earned" income and that pensions (e.g. military retirement or old school company pension programs) were not considered earned. Clarify or confirm please....thx
MY State pension is taxed...but on the flip side, I do get a decent tax refund...but will my social security pension be taxed...my full retirement age is May, 2022...a few months?
Did you watch the video? If you did, you would know it is relative to your income. You think Devin knows what your income will be this year, as well as your marital status?
@@clintfalk yes I did watch the video...I was addressing the question to Devin.....I don't need your nasty, condescending attitude!..again, I was addressing the question to Devin Carroll...not a troll!
Hello Devin, are you saying that if I file to collect Social Security, I'm 62 my husband is just 60 and still employed. Are you saying it's based on his income as well on how much I would get?
Live in a state with no income tax. At present, eight states-Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming-levy no state income tax.
Of course! But, that doesn't get you off the hook for Federal taxes on social security benefits. Some states WITH state income taxes offer exemptions to retirees, including some states that are INEXPENSIVE to live in. The sad thing though, is that some other states like MI and MN have confiscatory tax laws that cut no slack to retirees. I will be retiring abroad for awhile, though my total income will not even approach the annual exclusion of 108k for expats.
Thank you for this information I am 66 now will be 67 I want to know should I wait till 70 I need to know this I am single still paying a over payment when I got married ANF when I did the polls so I really needs to know. Thank you for letting me know
No it means if you have SS benefits of say $20,000 a year you take half of that $10,000 add that to your $36,000 now you have $46,000 then if your single take $25,000 from $46,000 = $21,000 then half of that or $10,500 then you subtract $32,000 from $46,000 or $14,000 taxed at .35% or $4,900 add your $10,500 to end up with $15,400 you add that to your pension of $36,000 and you get $51,400 then you take your standard deduction on Federal. Bottom line is you pay on that amount instead of your $36,000 and say your estimated $20,000 It is a little confusing These numbers are based on filing single
Here is how they can save money. Eliminate the Ex-spousal jump to the highest earner, and do a means test to determine if they have earned enough to get benefits. IF it is so, that is all they get on their on volition and not game the system for higher unearned payouts.
No, not on SS alone! We've worked and been taxed on every cent all our lives, we earn a less than liveable amount when we retire so taking any of it would be cruel.
I remember when they started taxing it, my grandmother was collecting and if not for her living with my mother( granny's daughter) and sister and I, she would have been much more upset.
Do the standard deduction and senior deduction on the total income (MAGI) reduce your total of the actual amount that you pay in social security taxes?
The standard deduction reduces the total amount you pay in taxes but it doesn't have any affect on calculating the amount of social security that is taxable.
Ohio does not require us to pay taxes on Social Security, but Federal Tax requires us to pay tax on SS. I have read that paying taxes on SS is voluntary, but I pay it anyway, to be safe, and it seems to work for us.
I am figuring my retirement income as if it is all taxable in case I make some minor errors on the other side. I'd rather find out I have more net income than less after my first year of retirement.
Hi Devon, thank you for your videos. Today I had my phone interview with SSA. I will start my benefits this coming October. I asked the SSA rep about exceeding the early SS wage limits (currently $19560). I was told that should I go over the limit I would be penalized 1dollar for every 2 dollars over the limit. I asked if my benefit would be adjusted and was told I would have to pay the overage penalty when i do my taxes. Do you know if there is an IRS publication which addresses my question as I have been given 3 different answers from SS reps?
Do you think Social Security should be taxable? 😡
No it should not be
No at full retirement age.
No..That money was alreadly taxed.
No
No!
Due to inflation and how high the cost of living is taxing social security would make it harder to live day to day than it already is.
No should be not taxable.
I believe that there should not be taxes on Social Security because we paid taxes on our income when we earned it.
And is the bottom line...double taxation...
It was not taxed already. This has been explained numerous times.
@@SandfordSmythe The employee contribution was and is taxed. This has been explained numerous times.
@@everetteborr Employer and interest was not taxed . You are not taxed on the employee contribution.
@@SandfordSmythe It would be double taxation for Roth distributions, but not double taxation for Social Security distributions? Social Security is only taxed because it is an easier target than Roth’s. The taxed portion of Roth’s is minuscule compared to Social Security. Of course, beneficiaries feel robbed with such inequitable treatment and their treatment should not be minimized.
Thank you for all your info. The tax on social security should not happen!
You just need to thank. Joeblow Biteme for when he was senator
@@jonlee333 It was more than just him
Social Security should not be taxable. It’s a disgrace that congress has not moved to repeal this 1983 law
AND the 1993 law increasing the taxable amount from 50% to 85%!
You can thank Ronald Reagan for this tax.
Devin, I worked 50 years, 2 and 3 jobs, I earned that money, the government taxed my income, that money is MINE........
No absolutely not, this is criminal. It should never have been taxed at all. Go to a flat tax and leave seniors alone.
A true flat tax on all income only reduces the tax for the rich and places a greater burden on the poor.
Flat tax DOES tax you.
No, it shouldn't be taxable. Why? Because I can remember when it wasn't, though the implications weren't clear to me then. It was still early in my work career. Then again, I can remember when my full retirement age was 64 and 6 months. Then they added to years to it (which is technically a default). Heck, I can remember reading an article in Reader's Digest by the late Sen. Barry Goldwater, stating that penalizing early retirees for working while collecting SS benefits was robbing them of their benefits. I think it was called "The Social Security Rule That Robs American Seniors". In hindsight, I have to agree. But to the point, tax my work earnings, tax my taxable investments but don't tax my social security income.
Just saw your message SS in 1935 or earlier was 65 never below that
No tax on SSI. I have already paid taxes on same when I was working. Thank you!
Social Security should NOT be taxed!
The propaganda put out by the government says SSI isn’t taxed. An out right lie.
SS should not be taxed. We’re already paying tax on the income we earned to pay the tax. It seems to me they treat this as a valued added tax.
Double taxation. I thought that was against the law.
Wrong. You are thinking about your SS taxes as though they went into a personal account you draw from. 7.5 years is all most workers have to draw and they are ahead of their lifetime SS taxes paid. In other words, you are receiving money after that point you never paid taxes on.
@@adstaton8461 Your argument makes no sense given that Roth distributions are tax free. Social Security should be treated the same.
Value add for greedy politicians
Great video. Easy to understand. Example helps a lot. Learning more now as close in on taking SS. Realizing a big part is subject to taxes is depressing. But such is life. Learn and plan accordingly.
NO, I do not believe that Social Security should be taxable .
We’ve already been taxed on these benefits-I do not think that SS should be taxed. Thank you so much for your clear explanation and examples. It sounded simple to figure out but with regard to the IRS I always doubt myself. Because I’m married I’m ‘penalized’ because of my husband’s income! We are becoming more and more financially disadvantaged by marrying.
You were not already taxed on the benefits because you did not previously receive it.
Good video. I live an SS and a military pension so it’s fairly easy to calculate how much federal withholding to pay on my pension. I try to get as close to zero on my income tax return as I can. Got pretty close this year. Still, taxing SS at all is unfair. I know the trust fund is in trouble but Congress is sitting on their thumbs and not doing anything to solve the problem.
Thank you, keep up the good work.
Subscribed. You are answering questions I've had for a long time! Thank you!
We ended at 4:57 with the couple has $23,800 of taxable income. However with the 2023 standard deduction of $27,700 that leaves them owing no taxes at all right?
Thanks Devin, always useful information clearly explained!
If you made $5/hr for 50 years and invested 12.5% of your income at 8% return it would yield $2,222/month for 30 years. In other words your social security has already been taxed.
Thank you for simplifying the calculating.
There also seems to be a marriage penalty for filing jointly.
You take $25,000 deduction when single
but, you only take $34,000 when married.
On what occasion is it better to file married filing separately?
It seems to be that when one spouse makes a lot more money
David, this was helpful. Not collecting SS yet but anticipated 85% of total social security was taxable. Not the 3 bands (0%/50%/85%) on 1/2 SS plus other income. In other words with your example, I thought 85% of $40,000 was taxable. This would be $34,000, plus $52,000 of other income, or total taxable amount of $86,000. Certainly different equation. I am happy to know I over projected our taxes.
No we already paid. Now this reduction is after the the gross income tax credit is off right?
5:02 seems like a weighted statement. The percentage to SS, but not considering their other income and its affect on the result is a confusing statement.
Just my 2 cents which is 75% of my combined, inflation and SS adjusted, taxable income...this year.
Hi from WA State: SS should not be taxable if total income is at the poverty line. For income above the poverty line, it should be taxed at the regular rate. I would like to see a decrease tax adjustment for seniors whos income is below 100,000 year.
My question is before your combined income is added to the social security table do you first account for the standard deduction which i believe is 12,000 something just under 13
no. also does this work out the same at the state level for the states charging income tax?
I'm confused. In the table at 4:54 you subtracted 44,000 from the total income of 72,00 to determine the taxable income. The 85% taxable portion should be using the social security income of 40,000 minus some amount, not 72,000 total income minus 44,000. I understand how the 0% and 50% amounts are determined, but I don't understand what the correct 85% value should be.
I think potentially taxing social security is ok, but the threshold amounts need to be raised and then adjusted for inflation going forward.
Thank you so much for research.
The sad part of this is that any of your Social Security is taxable, it shouldn’t be
First, the deductions from our paycheck did not reduce our taxable income at the time. Therefore, our SS earnings based on those earlier payroll deductions should not be taxed. Failing that, the government should make a little attempt to be fairer by at least indexing these taxable earnings for inflation.
Once the government taxes something it's difficult to stop. Its easier to raise the exempt amount. How about exempting the first $100000.00?
No! Why? Haven't we and our employers already been taxed on it once when we earned it, and if you think about it when we had to file taxes on it at end of year. They need to concentrate on paying our money back with interest and leave our money alone. Thanks for the videos😊
We paid tax on it when we made the money and now have to keep paying why already taxed for same money 🤑💰 that sucks big time
What if you get more than paid in?
@@ws775 Social Security should be tax free just like Roth retirement distributions are tax free. It’s ridiculous to tax Social Security when Roth distributions are tax free.
I was told once you are 65 that no tax on ss but if you still work you have to pay tax on the work money
You were told wrong.
They already tax Social Security when I did mortgages we were able to add an extra 20 or 25% onto people that were drawing Social Security and having a mortgage so they do it on the slide but they don’t tell you that they do it
Always calculations, tables and formulas. I worked for a million years paying taxes - No tax on Social Security!!
Thanks devin Carroll
I might have missed you saying this. But isn't the amounts based on your adjusted gross? That is the amount after the standard deduction? Thanks
They will take your money...your cow, your chickens, your clothes, your old horse, and grandma. They are ruthless. ; )
Hello, quick question, I am a 62 yo retired Federal employee. I get a monthly annuity and have Federal tax taken out of that. My wife still works and has Federal tax (10%) taken out each paycheck. This past year we got a Federal tax refund of over $2k. Since I turned 62 two months ago, my SSA Supplement ended. Starting this month I will begin receiving my Social Security benefit payment which works out to be about $700 more than my SSA supplement was per month. My question is, since my wife and I received a good amount from last years Federal tax return, am I required regardless to have additional Federal tax taken out of my Social Security benefit even if I think we are paying adequate Federal Taxes on our income? Thank you.
Would severance compensation count as income? I recently received in 2021 Severance for an early retirement incentive package which I had rolled over directly, (pre Tax) into my qualified 457b (deferred compensation) account. ?? Soc. Sec. now says I was over paid by them. I was retired for the entire remaining months in 2021. Seems wrong to me!?!? This was not earned income .... What say you?
Hi what time to pick up my social security tax pls, file on February 28 2022
Should Social Security income be taxable? No. Call should other forms of income be taxable in retirement? Possibly, and they should be index, or adjusted in favor of the retiree based on inflation.
Absolutely not! We already paid the taxes during our working/earning years. Is my VA disability payment included income for taxing my social security?
No tax has already been paid once
So is there a standard deduction or an itemized deduction on that income similar to non retirement income?
This is applicable only if both are retired correct or does the same formula apply if one is still earning income, 70,000 and the other receives 2500 a month before taxes in social security retirement income.
No, I don't think SS should be taxed. The fact that it is brings up another question; Two married adults working full time til SS eligible. Would they be better off if they divorced since their retirement benefits are in completely different investment accounts?
Devin a question ❓ the tables you showed are those amounts before or after your AGI is figured out??? I've NEVER heard this explained. THANKS ☺️ Frank from Tennessee.
What tax rate is used on the taxable portion of income
I get ssi have 2 boys (18, 16) it will be great that I would be allowed to file for taxes
Adjust the thresholds for inflation and then only the top 10 % would be subject to taxation on social security income.
What states do you actually file taxes for social security income and or ssdi?
No tax on social security income.
Our tax system is proof when our government gets involved bad things happen and we the people aren't happy about it.
Thanks for being around to help though
I am 58 as of Oct 2022. I'm am on ssdi. I was married over 20 yrs then separated. She worked all her life an passed at age 50. What happens now should I leave it as is or is there a better way.
Can you clarify when you find yourself in the threshold where 50 or 85% of your benefit will be taxable. We are only using half the benefit for that calculation. But on our actual tax return we must enter the full amount of social security. Does that mean that whole SS amount will be taxable at that level
even though the threshold calculation only requires half to determine which level of taxation? I haven't filed for Social Security yet so I don't know if we only need to enter half the amount on the tax return or if the whole amount is entered and becomes part of the AGI. Lastly, how does the deduction play into this. I am used to the taxes being determined after subtracting the standard deduction . When collecting Social Security does it change the effective rate? Will you continue to be taxed at the higher threshold rate even if your deduction brings down the incometo a lower number?
Hi Devin...Does this calculation work the same for Social Security Disability? Does age play a factor? Thanks.
Yes
Dear Devin. I strongly believe social security taxation is not fair because we already pay taxes when we earned and contribute to it. Cost of leaving is killing us
Yes it sure costs alot to leave.
My spouse wants to file taxes separately and did so last year. No convincing him to change. how do I figure what part of my SS and other income is taxable?
If 50% percent of social security is taxable according to my combined income. 50% is considered
for income.
Are we taxed on the total ss amount received or 50%
that was determined to be combined income?
Thank you! Great show as always!
It was already taxed when you made it. So no tax period.
How is rental income computed into this "combined" income? As if income from a job??
Devin my Name is Dawn I'm on social security I'm in Texas we do not taxes on SSI or SSDI in Social security because it's already taken out so no it's not taxable.it like if person supposed get$841 they only get SSI $64.67 if you get SSDI it said person supposed get $774 in SSDI award letter said you get $496 but you get only $453 explain that!!!
Sorry Dawn, but the topic here is FEDERAL income taxes.
But the couple in your example still get their standard deduction amount, right? About 26K? Leaving them just a few hundred dollars of taxes?
The calculation showed how much SS is taxable. Need to add that to the other taxable income before applying deductions and tax brackets.
@@davidcarbery2388 right, they could make an additional 20+K before any taxes due. My husband and I won't have much beyond SS, but it should be enough. Even including RMDs from our 401K, we won't have to pay fed taxes.
Yea someone figure it out Most of these people replying do not get that
I thought taxable income was "earned" income and that pensions (e.g. military retirement or old school company pension programs) were not considered earned. Clarify or confirm please....thx
What about lump sum ssdi payments? Do a video on that please.
Social security should not be taxable anywhere.
MY State pension is taxed...but on the flip side, I do get a decent tax refund...but will my social security pension be taxed...my full retirement age is May, 2022...a few months?
Did you watch the video? If you did, you would know it is relative to your income. You think Devin knows what your income will be this year, as well as your marital status?
@@clintfalk yes I did watch the video...I was addressing the question to Devin.....I don't need your nasty, condescending attitude!..again, I was addressing the question to Devin Carroll...not a troll!
Hello Devin, are you saying that if I file to collect Social Security, I'm 62 my husband is just 60 and still employed. Are you saying it's based on his income as well on how much I would get?
Live in a state with no income tax.
At present, eight states-Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming-levy no state income tax.
Of course! But, that doesn't get you off the hook for Federal taxes on social security benefits. Some states WITH state income taxes offer exemptions to retirees, including some states that are INEXPENSIVE to live in. The sad thing though, is that some other states like MI and MN have confiscatory tax laws that cut no slack to retirees. I will be retiring abroad for awhile, though my total income will not even approach the annual exclusion of 108k for expats.
Do you have videos on married filing separately SS issues?
Is VA disability income included ? It is non-taxable.
Is VA disability (non taxable) considered in the calculation to determine combined income?
I dont think they should count military pension toward earnings for taxing social security.
Why not do a poll on ss and being taxable
Does alimony count in the combined income?
Thank you for this information I am 66 now will be 67 I want to know should I wait till 70 I need to know this I am single still paying a over payment when I got married ANF when I did the polls so I really needs to know. Thank you for letting me know
No, SS should not be taxed. It's obscene the amount of $$ the government WASTES. This video was helpful. Thank you
What the governments wastes has nothing to do with the SS Fund. This money goes to SS.
What about when you get Divorced and your filing now single?
I have two pension coming in will be around 36000 a year, without adding any social security, does it mean I get 50 % less of social security
No it means if you have SS benefits of say $20,000 a year you take half of that $10,000 add that to your $36,000 now you have $46,000 then if your single take $25,000 from $46,000 = $21,000 then half of that or $10,500 then you subtract $32,000 from $46,000 or $14,000 taxed at .35% or $4,900 add your $10,500 to end up with $15,400 you add that to your pension of $36,000 and you get $51,400 then you take your standard deduction on Federal. Bottom line is you pay on that amount instead of your $36,000 and say your estimated $20,000 It is a little confusing These numbers are based on filing single
Here is how they can save money. Eliminate the Ex-spousal jump to the highest earner, and do a means test to determine if they have earned enough to get benefits. IF it is so, that is all they get on their on volition and not game the system for higher unearned payouts.
Does military retirement count on this calculation as income
Devin: When do you think they will recalculate the WEP? You had mentioned they were considering it.
Is alimony and military retirement counts as income?
No, not on SS alone! We've worked and been taxed on every cent all our lives, we earn a less than liveable amount when we retire so taking any of it would be cruel.
Hello please help my 2023 total for my Social Security is $26,676 I’m single no other income how much is my tax ? Thank you sir
Nope! SSA must not be taxed.
I remember when they started taxing it, my grandmother was collecting and if not for her living with my mother( granny's daughter) and sister and I, she would have been much more upset.
Does VA disability, which is not taxable, count toward overall income total?
Do the standard deduction and senior deduction on the total income (MAGI) reduce your total of the actual amount that you pay in social security taxes?
The standard deduction reduces the total amount you pay in taxes but it doesn't have any affect on calculating the amount of social security that is taxable.
Do I think SS should be taxable?
In a word. NO
It’s already been taxed once and once is quite enough, thank you.
Ohio does not require us to pay taxes on Social Security, but Federal Tax requires us to pay tax on SS. I have read that paying taxes on SS is voluntary, but I pay it anyway, to be safe, and it seems to work for us.
We pay double taxes taxes taken out when we're working and taxes when we are retired..
I am figuring my retirement income as if it is all taxable in case I make some minor errors on the other side. I'd rather find out I have more net income than less after my first year of retirement.
I believe that social security should not be taxable.
Will cash inheritants affect my taxes on SSI
Hi Devon, thank you for your videos. Today I had my phone interview with SSA. I will start my benefits this coming October. I asked the SSA rep about exceeding the early SS wage limits (currently $19560). I was told that should I go over the limit I would be penalized 1dollar for every 2 dollars over the limit. I asked if my benefit would be adjusted and was told I would have to pay the overage penalty when i do my taxes. Do you know if there is an IRS publication which addresses my question as I have been given 3 different answers from SS reps?