#1
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A bit unclear about taxes on Social Security
In 2025 I can start receiving my full Social Security benefits.
However, I'll likely still be working for while after my eligibility date. If I elect to receive Social Security benefits while still working a full time job, will I basically be treating those Social Security payments as a raise from my employer and paying taxes on the SS income at the same rate I pay on my full time job income? Thanks! |
#2
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If you make too much from your job, you really don't want to start taking social security now. You'll lose a LOT by doing so.
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#3
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If you haven't done so yet - register on SSA.gov - there are lots of great resources there to answer all your questions.
https://www.ssa.gov/benefits/retirem...g%20the%20year.
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"One small heart, and a great big soul that's driving" |
#4
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Depends on your age. Assuming the OP is past the age when he can work full-time and draw Social Security, I would think that he'd no longer contribute to Social Security...
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#5
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I worked for over three years after I started drawing social security upon reaching FRA. I was unemployed when I elected to receive SS but was soon re-employed. As I had almost half of my paycheck deposited in my 401k, I did have to pay taxes on some of my SS but not too much. Still, I would recommend not drawing SS if you are still working full time as the SS benefits would be higher when you did decide to retire.
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#6
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Yikes. There are a few a few pitfalls. You really need to speak with a financial adviser and/or a tax accountant. You may spend a few hundred $ but consider that an investment which will yield many 1000’s of dollars.
There is more to this than just SS income and your potential ongoing employment. But I also agree with Fitness - go do some serious reading.
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#7
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You owe income tax on your Social Security payments.
If you start drawing SS too early while you are still working, your SS benefit will be reduced. It's complicated, consult a professional. If you are over 65 and have not enrolled in Medicare, you can be financial penalized for not enrolling on time. It's complicated, consult a professional. If you make mistakes, there can be taxes, penalties, and reductions to your SS benefit. It's complicated, consult a professional.
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#8
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My understanding has been that IF you take SS after you have reached your full retirement age you can make as much money as you want without any penalties. IF you take it before your full retirement age you will be penalized.
Some states tax SS and some states don't.
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#9
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This is important to know.
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#10
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Not sure about this. SS gets reported on 1040, and if the rest of your income (not just salary but all income) is above a certain point, part of your SS becomes taxable as well.
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#11
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I was talking about SS penalties not taxes.
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Waterloo WL-S, K & K mini Waterloo WL-S Deluxe, K & K mini Iris OG, 12 fret, slot head, K & K mini Follow The Yellow Brick Road |
#12
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Quote:
The professional who steered me wrong was the "retiree's advocate" of my wife's former firm, who carry our health insurance. The professional who cleared up the mess was the "customer advocate" of the providing insurance company itself. They not only instructed us what to do, but how to do it, beginning with how to get through to the correct person in our local SS office, which forms we needed, and emailed a template of how EXACTLY to fill out the forms. And I can state definitively that it would still be a mess without that assistance. It's complicated, consult a professional ! |
#13
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Quote:
And the feds tax social security benefits above certain thresholds… |
#14
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Quote:
>You can earn any amount and not be affected by the Social Security earnings test once you reach full retirement age, or FRA. That's 66 and 6 months if you were born in 1957, 66 and 8 months for people born in 1958, and gradually increasing to 67 for people born in 1960 and later. In 2024, if you collect benefits before full retirement age and continue to work, the Social Security Administration will temporarily withhold $1 in benefits for every $2 you earn over $22,320. If you will reach FRA in 2024, the earnings limit goes up to $59,520 and $1 is deducted from your benefits for every $3 you earn over that. Once you actually attain full retirement age, the earnings limit goes away.<
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#15
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I worked full time for a few years after receiving SS and there was still an SS deduction.
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Guild F212: 1964 (Hoboken), Guild Mark V: 1975 (Westerly), Guild Artist Award: 1975 (Westerly), Guild F50: 1976 (Westerly), Guild F512: 2010 (New Hartford), Pawless Mesquite Special: 2012, 90s Epi HR Custom (Samick), 2014 Guild OOO 12-fret Orpheum (New Hartford), 2013 12 fret Orpheum Dread (New Hartford), Guild BT258E, 8 string baritone, 1994 Guild D55, Westerly, 2023 Cordoba GK Negra Pro. |