topic Re: Question about Social Security in Community Chat

Question about Social Security

KatieB — Fri, 28 Mar 2014 23:32:51 GMT

I am hoping someone can answer my question regarding taxes on Social Security... I am 63 years old, have lost my job and have not been able to find another position. I'm thinking about starting social security and would like to know if the social security income is taxed... If so, what is the tax rate? I will have to work at some type of position (minimum wage, probably) to supplement the social security...

Thanks for your help on this...

KatieB

Re: Question about Social Security

Mom2Dogs — Sat, 29 Mar 2014 00:40:57 GMT

I asked our tax preparer this question when dh and I had our taxes done, for me it was just a curious question but the answer is not simple and I cannot answer it for you...sorry!

It depends on the income from your earnings, which I see you are not employed so the answer might be easier to figure out for your circumstance. I am still working, (self employed) dh is retired, plus our investments so there was just not an easy percentage number to give us. You might look on the social security website for a clear answer...there is never an easy answer when it comes to Uncle Sam.

Re: Question about Social Security

Lynneuk — Sat, 29 Mar 2014 01:26:13 GMT

Why don't you collect unemployment for as long as you can until you reach full retirement age. That way your social security will be higher.

As far as taxes on SS, I think it depends which state you live in.Every one is different.

Re: Question about Social Security

kittymomNC — Sat, 29 Mar 2014 01:41:55 GMT

The taxable amount of your social security will depend on how much other income you have for the year, and it could be that none of your benefit would be taxable. Your rate will depend on your adjusted gross income, as usual. There is a worksheet you can use to calculate the taxable part of social security and you can find it on the IRS website.

Also, if you go back to work before full retirement age, you are allowed to earn up to a certain amount before they will start deducting from your monthly benefit $1 for every $2 you earn over the limit. But it will also increase your benefit when you reach full retirement age. If you will go to ssa.gov, and search for "getting benefits while working", it will explain that and how it works. You can get most of the information you need on that website.

This can be a scary situation...do some research and it will make you feel better. Good luck to you!

Re: Question about Social Security

151949 — Sat, 29 Mar 2014 02:03:08 GMT

On 3/28/2014 Lynneuk said:
Why don't you collect unemployment for as long as you can until you reach full retirement age. That way your social security will be higher.

As far as taxes on SS, I think it depends which state you live in.Every one is different.

federal income tax is FEDERAL - it does not vary by state.

Re: Question about Social Security

Kathlen — Sat, 29 Mar 2014 02:42:06 GMT

I live in NY - no State of City income tax. Just Federal.

But the rate depends on your income bracket.

Since you are well below your normal retirement age, you'll get a reduced benefit. If that's your only income - you may not owe any Federal tax.

Re: Question about Social Security

KatieB — Sat, 29 Mar 2014 12:42:00 GMT

On 3/28/2014 Lynneuk said:
Why don't you collect unemployment for as long as you can until you reach full retirement age. That way your social security will be higher.

As far as taxes on SS, I think it depends which state you live in.Every one is different.

I am drawing unemployment now and thanks to our id*ot govenor, he reduced the benefit amounts and reduced the number of weeks you can collect...

Re: Question about Social Security

151949 — Sat, 29 Mar 2014 12:51:13 GMT

Katie - if i were you i would goto your local SS office with a written list of questions you have. I'm pretty sure you will have more from SS (even after paying back and taxes) than you are getting from unemployment.

Re: Question about Social Security

Pook — Sat, 29 Mar 2014 13:13:44 GMT

You probably will be able to get an answer on the Soc Sec website.

Re: Question about Social Security

JamicaJammer — Sat, 29 Mar 2014 14:57:09 GMT

Not only will you have to pay TAXES, but Soc. Sec. will deduct $1 from your benefit for each $2 you earn above $15,480 in 2014.

Remember that withdrawals from traditional IRAs and 401(k) accounts = EARNINGS, too. So you may just earn $12,000 in salary, but if you withdraw $5,000 from your IRA, you'll LOSE some of your Soc. Sec. money, too.

Re: Question about Social Security

Financialgrl — Sat, 29 Mar 2014 15:38:28 GMT

I prepared taxes up until 5 years ago. Most seniors figured it another way. They visited SS to see what their monthly income would be, then figured out how much they needed to earn in a side or PT job to make up the difference to pay their bills. They'd have taxes taken out of the side job and at the end of the year they'd come in to see if they owed money but more times than not, many were no different than teens working in the summers - they only filed to get back a refund or they'd paid enough during the tax year and not owe or owe little.

And don't forget what JJ said above, if you take distributions from any retirement account such as IRA or 401k, you never paid taxes on that either so it also counts. When I saw people that took SS in their early 60s, many worked PT jobs while they were still young enough to do so and kept their retirement accounts intact until they were 70 1/2 until they had to begin taking their required minimum distributions. That way they still had and used money from their required minimum distribution to offset what they were earning in their PT job once they were older and stopped working.

Re: Question about Social Security

kittymomNC — Sat, 29 Mar 2014 16:11:27 GMT

On 3/29/2014 KatieB said:
On 3/28/2014 Lynneuk said:
Why don't you collect unemployment for as long as you can until you reach full retirement age. That way your social security will be higher.

As far as taxes on SS, I think it depends which state you live in.Every one is different.

I am drawing unemployment now and thanks to our id*ot govenor, he reduced the benefit amounts and reduced the number of weeks you can collect...

KatieB, your description of our state's "head honcho" is so accurate!!!! And in addition to reducing unemployment, he refused Medicaid expansion which is hurting hundreds of thousands of people, some of whom also got their unemployment reduced, so he gave them a double whammy! He and his cohorts need to go!

Re: Question about Social Security

KatieB — Sat, 29 Mar 2014 17:55:46 GMT

On 3/29/2014 kittymomNC said:
On 3/29/2014 KatieB said:
On 3/28/2014 Lynneuk said:
Why don't you collect unemployment for as long as you can until you reach full retirement age. That way your social security will be higher.

As far as taxes on SS, I think it depends which state you live in.Every one is different.

I am drawing unemployment now and thanks to our id*ot govenor, he reduced the benefit amounts and reduced the number of weeks you can collect...

KatieB, your description of our state's "head honcho" is so accurate!!!! And in addition to reducing unemployment, he refused Medicaid expansion which is hurting hundreds of thousands of people, some of whom also got their unemployment reduced, so he gave them a double whammy! He and his cohorts need to go!

Absolutely... And he did find enough money to renovate or at least make a lot of expensive improvements to the governors mansion.... I don't know how he justifies any of his decisions. They said on the news that the unemployment rate for NC is down, but that's probably because people are no longer qualified to draw unemployment (over 19 weeks).

KatieB

Re: Question about Social Security

chrystaltree — Sat, 29 Mar 2014 18:50:24 GMT

I think you should ask Social Security or go to their website if you want the facts. The real facts.

Re: Question about Social Security

Kachina624 — Sun, 30 Mar 2014 00:28:33 GMT

On 3/28/2014 happy housewife said:
On 3/28/2014 Lynneuk said:
Why don't you collect unemployment for as long as you can until you reach full retirement age. That way your social security will be higher.

As far as taxes on SS, I think it depends which state you live in.Every one is different.

federal income tax is FEDERAL - it does not vary by state.

And STATE income tax is STATE and if your state has an income tax, you may have to pay it on your SS income.

Re: Question about Social Security

Rainbows and Roses — Sun, 30 Mar 2014 05:40:09 GMT

I would try unemployment like someone suggested and I have not read all the posts.......it can make a big difference in the age you draw your ss....I hope you can wait until you are 65 to get the most.........usually if you make under 25,000 a year you don't have to file income tax but I am sure a tax adviser would answer this question for you. I am not 100% sure in what I have written but I think I am correct.

Re: Question about Social Security

kittymomNC — Sun, 30 Mar 2014 06:58:02 GMT

On 3/29/2014 Rainbows and Roses said:
I would try unemployment like someone suggested and I have not read all the posts.......it can make a big difference in the age you draw your ss....I hope you can wait until you are 65 to get the most.........usually if you make under 25,000 a year you don't have to file income tax but I am sure a tax adviser would answer this question for you. I am not 100% sure in what I have written but I think I am correct.

Did you mean to say she might not have to PAY income tax if under $25,000? She would still have to FILE income taxes, even if her income and deductions meant that she didn't have to pay anything. I was randomly audited once a long time ago, and believe me, no one wants the IRS coming around!

Re: Question about Social Security

JamicaJammer — Sun, 30 Mar 2014 14:27:47 GMT

Not to be too personal, but were you perhaps married for 10 yrs or longer to someone?

If so, perhaps you can claim SS on their record and work PT til you're 65.

Re: Question about Social Security

KatieB — Sun, 30 Mar 2014 22:49:55 GMT

On 3/30/2014 JamicaJammer said:
Not to be too personal, but were you perhaps married for 10 yrs or longer to someone?

If so, perhaps you can claim SS on their record and work PT til you're 65.

Afraid not... That would be ideal.

KatieB

Re: Question about Social Security

jewelfool — Mon, 31 Mar 2014 17:49:28 GMT

There is no tax withheld from my DH social security. However, it IS income and you have to pay at least federal taxes (we don't have state here) on it. After we did our taxes for 2013 he called immediately and started having them withhold tax from his check.