Question about Social Security

KatieB · ‎03-10-2010

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

Mom2Dogs · ‎03-09-2010

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.

Lynneuk · ‎03-10-2010

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.

kittymomNC · ‎08-09-2012

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!

151949 · ‎03-09-2010

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.

Kathlen · ‎03-09-2010

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.

KatieB · ‎03-10-2010

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...

151949 · ‎03-09-2010

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.

Pook · ‎03-20-2010

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

JamicaJammer · ‎01-14-2013

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.