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February 4, 2025
Question

How can I keep from having to pay on my taxes when I only receive income from my retirement?I'm not old enough to get SSI or have a part time job.

  • February 4, 2025
  • 1 reply
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I have a small amount of taxable interest that was included in my income but I don't understand this when I made less than $50,000 this year

    1 reply

    February 4, 2025

    Pensions and most other retirement benefits are taxable income, unless you are have one of the specified Non-Taxable Retirement benefits.  They are taxed at the same rate your regular wages would be taxed by the federal government.  The best way to not have to pay in at the end of the year is to have the pension plan administrator withhold taxes. If you are single and you have $50,000 in pension or retirement income, you have taxable income for 2024 of $35,400 when you take in account your standard deduction which is $14,600.  This would put you in the 12% Tax Bracket

    If you own a house, pay state or local or property taxes, donate to charity or have medical expenses in excess of 7.5% of your AGI, you may be able to Itemize your deductions which will lower your taxable income.  However, you will still likely have some taxable income. 

    If you are currently not old enough to get Social Security, be aware that when you do collect social security, this can be up to 85% taxable depending on your other income. You can also choose when it is time to have taxes withheld on your social security. 

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