Is Social Security Taxable

Is Social Security Taxable

Is Social Security Taxable

This is probably the biggest question
asked by those nearing or reaching
retirement age. As with most financial
questions, is Social Security Taxable,
there is not a definitive yes or no
answer.

Social Security Taxable Income
depends on certain factors. To answer
is social security taxable initially, is no
it is not taxed, provided that is your only
source of income. If you have other
sources of income coming in, like from
a 401k account, then per the IRS, you
can figure into your “combined income”
for tax purposes, your taxable income
and half of your social security income.

Your “combined income” is considered;
your adjusted gross income plus, any
nontaxable income, plus half of your
social security benefits.

The IRS sets a threshold for single
taxpayers and filing jointly taxpayers.
If single, the threshold is $25,000 and
filing jointly is $32,000 before you owe
taxes on your income, provided you
comply with their guidelines.
Remember it all relative to your
“combined income”.

Social Security Taxable Income

If your combined income for the 2019
tax year, as a single tax filer, is between
$25,000 and $34,000, then you’d be expect
to pay taxes on up to 50 percent of your
social security income.

If you make more than the $34,000
combined income, you’ll be paying taxes
on as much as 85 percent of your social
security benefits.

As for joint filers, the numbers are; $32,000
to $44,000 for a combined income, expect
to pay on up to 50 percent of your social
security benefits, and over $44,000, then
up to 85 percent of your social security
benefits.

This information is subject to error and
for that reason, please seek financial tax
consultant for clarification, on how you will
be taxed on your social security benefits
along with your combined income totals.

Is Social Security Disability Taxable

In short, the same guidelines for owing
taxes on your combined income, applies
to your total income, and therefore expect
to pay taxes, accordingly, as described
above. Granted, each person’s situation
is different and what is taxable and
what is not, can be subject to legal
considerations and you should seek a tax
consultant, to know what the right answers
to your taxable income is.

Income Tax on Social Security After Age 70

Okay, it’s important to understand that you can begin receiving your
social security benefits at age 62. If you start at that age, you will not
receive the maximum amount of social security benefit amount. Each
year after age 62, if you wait, your social security benefits increase in
the amount you will be able to draw.

Depending on the year you were born, there is a full retirement age,
at which you can draw your full retirement social security benefits.
See this chart to determine what your full retirement age is.

You can continue to see increases in your social security benefits,
if you wait until the age of 70. After 70, there will not be any additional
benefits to look for, and for this reason, you should begin to receive
your social security benefits.

As for income tax on social security after age 70, you will still be
subject to being taxed on up to 85% of your “combined income”,
so this depends on all sources of income combined.

Again, consult with a tax advisor to get the best guide for filing your taxes.

Compare Drawing Social Security at Age 62 vs Full Retirement Age

Since your birth year makes a difference in what your full retirement age
is, you should consider running the numbers of when you would prefer to
start drawing out your social security benefits. The earlier you start
drawing, will reduce the maximum amount you can expect to receive, but
at the same time, there is a balancing act, as to how much more you could
have already withdrawn, opposed to waiting till a later age. It is important
that you see the amounts that change, depending on when you begin to
receive your social security benefits.

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Disclaimer: This website is not affiliated with the Social Security Benefits of the U.S. Government. Any comments or opinions are not meant to be advice
for your independent social security benefits. Please seek financial planning and advice from a licensed financial planner or the U.S. Social Security Office.

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