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Solved

Social Security exclusion of benefits question

Forum|Forum|1 year ago
June 26, 2024
1 reply
0 views

I've taken SS benefits for all of 2024 and I am still working. I figure my wages for this year will be high enough to have the SS benefits be taxed at near the highest level (something like 85% of the benefits?).

I'm using the Turbo Taxes' Tax Calculator to see if the withholding that I'm extrapolating for 2024 is enough to avoid writing a check to the IRS against the total of wages and SS benefits as Taxable Income.

So, my question: Is any part of the SS benefits paid to me excluded as not taxable? I seem to think the figure is the first $12K is excluded.

Thanks.

Ask the Experts - Retirement II - June 2024

Best answer by marctu

So, the concept here is "combined income". Combined Income is your adjusted gross income plus nontaxable interest and half of your Social Security benefits for the year.

If your combined income is under $25,000 (single) or $32,000 (joint filing), there is no tax on your Social Security benefits.
For combined income between $25,000 and $34,000 (single) or $32,000 and $44,000 (joint filing), up to 50% of benefits can be taxed.
With combined income above $34,000 (single) or above $44,000 (joint filing), up to 85% of benefits can be taxed.

There is no exclusion amount. Since your preference is to not cut a check, I would assume that 85% of your Social Security is taxable.

Thanks again for the question @Ounce440

All the best,

Marc

Employee Tax Expert

marctuAnswer

So, the concept here is "combined income". Combined Income is your adjusted gross income plus nontaxable interest and half of your Social Security benefits for the year.

If your combined income is under $25,000 (single) or $32,000 (joint filing), there is no tax on your Social Security benefits.
For combined income between $25,000 and $34,000 (single) or $32,000 and $44,000 (joint filing), up to 50% of benefits can be taxed.
With combined income above $34,000 (single) or above $44,000 (joint filing), up to 85% of benefits can be taxed.

There is no exclusion amount. Since your preference is to not cut a check, I would assume that 85% of your Social Security is taxable.

Thanks again for the question @Ounce440

All the best,

Marc

Employee Tax Expert

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

Ah, yes. Combined Income. I forgot about that term.

Thanks for your time, @marctu

You are welcome. Thank you for your question @Ounce440

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"