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Taxable Social Security Income

Forum|Forum|3 years ago
January 27, 2023
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Hi, I took my social security at the age of 62. My only other income is my retirement income from my employer. I've had to pay income taxes on a portion of my social security income (SSI) every year since I started receiving SSI. My full retirement age is 66 1/2. I am currently 65. When I reach full retirement age will the tax rate on my social security income become lower? Thanks

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Best answer by SteamTrain

Nope, it won't be lower.

But once you reach age 65, your Std Deduction increases.

_____________

When you start taking SS early, the SS admin can reduce your SS payments if you continue to actually work, and your working income is over a certain $$ amount....that's an entirely different process from the % of SS that is actually taxed at tax time. But for details on that, you'd have to check the SS website (unless someone with the exact details pipes in here) . But if you didn't work a paying job since starting SS, it wouldn't apply to you.

SteamTrainAnswer

Employee

Nope, it won't be lower.

But once you reach age 65, your Std Deduction increases.

_____________

When you start taking SS early, the SS admin can reduce your SS payments if you continue to actually work, and your working income is over a certain $$ amount....that's an entirely different process from the % of SS that is actually taxed at tax time. But for details on that, you'd have to check the SS website (unless someone with the exact details pipes in here) . But if you didn't work a paying job since starting SS, it wouldn't apply to you.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

fasteddie577Author

Thank you very much for the information. Have a great rest of your day.

S

sshubilla

Thanks. I understood that 85% of my and my wife's social security are taxable. Is that correct?

M

MayaD

Yes. You will pay tax on only 85% of your Social Security benefits, based on Internal Revenue Service (IRS) rules. If you:

file a federal tax return as an "individual" and your combined income* is
- between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits.
- more than $34,000, up to 85 percent of your benefits may be taxable.
file a joint return, and you and your spouse have a combined income* that is
- between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits.
- more than $44,000, up to 85 percent of your benefits may be taxable.
are married and file a separate tax return, you probably will pay taxes on your benefits.

Social Security

IRS.gov

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C

Csuftax2

Where in turbotax can I see the calculation used to determine the taxable amount of social security income? I have used IRS p15 W1 to do the calculation and need to validate the turbotax calculation. turbotax made 100% of our joint SS income taxable. A competing product showed the taxable SS income as 85% of the total SS income.