Question

First year collecting SS and working part year

Forum|Forum|2 years ago
January 26, 2024
1 reply
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Worked full time until May, Started collecting SS in June. Turbotax said it would address this later in the software. It never came up and has calculated that 50% is taxable. My understanding was that SS is only taxable based on what I earn after starting to collect. Is this taken into account in the software or do I misundertand something.

TurboTax Home & Biz Windows

VolvoGirl

Employee

You misunderstand.

There are 2 different things to know about social security. People get them mixed up all the time.

1. Your actual SS checks

If you are over full retirement age your actual ss checks won't be reduced. Otherwise they will actually reduce your payments if you make too much other income in the prior year. But there is a first year rule that they won't reduce it.

See SS FAQ for working after retirement

https://www.ssa.gov/planners/retire/whileworking.html

Special first year rule

https://faq.ssa.gov/en-US/Topic/article/KA-01927

2. Income Tax

For any age up to 85% of Social Security becomes taxable when ALL your other income plus 1/2 your social security reaches:

Married Filing Jointly: $32,000

Single or head of household: $25,000

Married Filing Separately: 0

Is your Social Security taxable?

https://ttlc.intuit.com/community/income/help/is-my-social-security-income-taxable/00/25600