# Social Security



## debodun

I just started receiving SSI this year. Will I receive a year end statement from them for income tax purposes?


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## Jackie22

debodun said:


> I just started receiving SSI this year. Will I receive a year end statement from them for income tax purposes?



Yes


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## debodun

Is this taxable income?


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## ClassicRockr

Yes, it's taxable income and I do receive a statement each year.


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## Mrs. Robinson

Yes,it is taxable but I think at a lower rate?? Anybody know this for sure? Or am I thinking Unemployment benefits?


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## jujube

It's taxable when your other income is above a certain point.  My mom doesn't pay any taxes on hers because she has low income.  I have to pay taxes on *part* of mine because I also have a pension and interest income that goes over the "limit".   There's a worksheet that will show you if you are exempt or how much you'll have to pay taxes on.


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## rkunsaw

Social security income is not taxable at all by itself. It can be partially taxable if you have enough other income. The amount changes so I suggest you ask a CPA.


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## Mrs. Robinson

Ahh,thanks for the clarification. We have always had other income as well so we still pay taxes...


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## Ken N Tx

jujube said:


> It's taxable when your other income is above a certain point.  My mom doesn't pay any taxes on hers because she has low income.  I have to pay taxes on *part* of mine because I also have a pension and interest income that goes over the "limit".   There's a worksheet that will show you if you are exempt or how much you'll have to pay taxes on.


Best info...


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## Georgia Lady

I get so little SS that I would be living at Daughter's, if not for Husband's Life Insurance and owning my home & car.


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## QuickSilver

I believe that up only 50% of SS is taxable... if your income is over $41,000 a year.. up to 80% is taxable..  that is what I read.. I'll find out for sure next year.  I'm having money taken out of my SS for Federal Taxes.. I get my first check next month.  My State does not tax SS money.


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## Denise1952

jujube said:


> It's taxable when your other income is above a certain point.  My mom doesn't pay any taxes on hers because she has low income.  I have to pay taxes on *part* of mine because I also have a pension and interest income that goes over the "limit".   There's a worksheet that will show you if you are exempt or how much you'll have to pay taxes on.



Gads, I hope you are right jujube, I understood my SS (pretty low) is not going to be taxed, and, I can earn up to a certain amount with that SS, and still not be taxed.  I think that is fair and good.   There should be a line drawn if I make way more in my senior years, but I can't believe I will just pet-sitting.


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## Denise1952

Georgia Lady said:


> I get so little SS that I would be living at Daughter's, if not for Husband's Life Insurance and owning my home & car.



I hear you Linda A lot of us are in that boat  I think we'll be ok, but we have to pay attention, there are those in this country that want our little, bit of dough and they don't care how they get it.  Yep, I've been visiting the political threads, and boy am I glad!!


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## Denise1952

Ken N Tx said:


> Best info...



Yes, so far so good, we don't have to pay if our income is below X amount, plus, we can earn up to a certain amount (I want to say 1400 but that could be off, and that includes out SS) before we have to pay taxes.  As always, I'll file and let them do their thing.  Heaven forbid they think I'm some "senior" miser that isn't reporting the millions I've made pet-sitting, LOL!!


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## Denise1952

QuickSilver said:


> I believe that up only 50% of SS is taxable... if your income is over $41,000 a year.. up to 80% is taxable..  that is what I read.. I'll find out for sure next year.  I'm having money taken out of my SS for Federal Taxes.. I get my first check next month.  My State does not tax SS money.



I think that SS money is not taxed, only amounts of money made above that amount, and it has to be a "certain" amount above.  You can earn more, but only to a point before it is taxed.  At least that's how I see the info at this point.


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## Denise1952

rkunsaw said:


> Social security income is not taxable at all by itself. It can be partially taxable if you have enough other income. The amount changes so I suggest you ask a CPA.



Exactly, that is how I've gathered it. Thanks for the affirmation denise


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## Denise1952

Mrs. Robinson said:


> Ahh,thanks for the clarification. We have always had other income as well so we still pay taxes...



Right Mrs. R. because I plan on having my 5 cents a glass of lemonade stand to help supplement my SS  I am way excited because where I'm moving has lots of sunshine  Lemon trees?? Hope so hugs, denise


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## Don M.

Here's the Straight Scoop...directly from the SSA Web Site.  SS is taxable depending upon how much income you have in a given year.  If your annual income is above $34,000, for a Single Filer, or over $44,000 for a couple, the tax rate is 85%.  If you make less than $25K (single), or $32K (married), there is no tax on SS benefits.  

http://www.ssa.gov/planners/taxes.htm


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## Denise1952

Thanks Don, we needed that instead of just guessing what it is


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## Ken N Tx

Don M. said:


> Here's the Straight Scoop...directly from the SSA Web Site.  SS is taxable depending upon how much income you have in a given year.  If your annual income is above $34,000, for a Single Filer, or over $44,000 for a couple, the tax rate is 85%.  If you make less than $25K (single), or $32K (married), there is no tax on SS benefits.
> 
> http://www.ssa.gov/planners/taxes.htm





nwlady said:


> Thanks Don, we needed that instead of just guessing what it is



That is correct...I just could not find it..

Like said before, you will get a (SSA 1099)  worksheet at the end of the year to see if you need to pay any tax..


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## QuickSilver

nwlady said:


> Yes, so far so good, we don't have to pay if our income is below X amount, plus, we can earn up to a certain amount (I want to say 1400 but that could be off, and that includes out SS) before we have to pay taxes.  As always, I'll file and let them do their thing.  Heaven forbid they think I'm some "senior" miser that isn't reporting the millions I've made pet-sitting, LOL!!



If you take your SS before your full retirement age, you are able to earn up to $15,720 a year without it affecting your SS.  then.. for every $2 you earn above that amount $1 is taken back from your SS.    However, if you work to your full retirement age like I have...  age 66.. You can collect your full SS benefit with no limit on your earnings... which is what I am doing..  I can make as much as I want without penalty.


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## Ken N Tx

QuickSilver said:


> If you take your SS before your full retirement age, you are able to earn up to $15,720 a year without it affecting your SS.  then.. for every $2 you earn above that amount $1 is taken back from your SS.    However, if you work to your full retirement age like I have...  age 66.. You can collect your full SS benefit with no limit on your earnings... which is what I am doing..  I can make as much as I want without penalty.


.
I believe that is without penalty to your benefit, but if you earn more you will have to pay income tax on your SS..Am I right??


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## ronaldj

I will let you know in four weeks when I get my taxes done....I do know you can earn up to 15,000 something...and taxes are being taken out of my SS...this is the first year I have drawn.....taxes can't live with them but we would be in bad shape without them....no SS for one thing


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## QuickSilver

Don M. said:


> Here's the Straight Scoop...directly from the SSA Web Site.  SS is taxable depending upon how much income you have in a given year.  If your annual income is above $34,000, for a Single Filer, or over $44,000 for a couple, the tax rate is 85%.  If you make less than $25K (single), or $32K (married), there is no tax on SS benefits.
> 
> http://www.ssa.gov/planners/taxes.htm



Yes... and because Social Security IS taxed if your total income is over that specified amount.. is why when I applied for my Benefits, I have opted to have Federal withholding taken directly out of my SS check before I even get it.  The options are 20%, 15%, 10% and 7%.   Both my husband an I have opted to have 10% withheld.  We know we will have an income over $44,000 this year..   So that withholding is in addition to what we have withheld from our regular salaries. Hoping we will not have to pay too much, but if we do, I will have to increase what is being withheld from my SS at least until I retire and my income decreases.


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## QuickSilver

Ken N Tx said:


> .
> I believe that is without penalty to your benefit, but if you earn more you will have to pay income tax on your SS..Am I right??



Yes..   My husband started collecting SS.  He is only 63.  He is a respiratory therapist and works an occasional shift through an agency.  He has to be very careful how much he is earning per month as we don't want to get to October or November and find that he cannot take any more shifts because he has gone over $15,720


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## QuickSilver

Don M. said:


> Here's the Straight Scoop...directly from the SSA Web Site.  SS is taxable depending upon how much income you have in a given year.  If your annual income is above $34,000, for a Single Filer, or over $44,000 for a couple, the tax rate is 85%.  If you make less than $25K (single), or $32K (married), there is no tax on SS benefits.
> 
> http://www.ssa.gov/planners/taxes.htm



You mean that 85% of your benefit is taxed.... NOT that the tax RATE is 85%  Right.


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## Don M.

QuickSilver said:


> You mean that 85% of your benefit is taxed.... NOT that the tax RATE is 85%  Right.



If you earn Above $44K a year, 85% of your SS is deemed taxable....at whatever percentage your overall income puts you in.  For example, if your AGI (adjusted Gross Income) is between $37K and $90K for calendar year 2014, you will fall into the 25% tax bracket.  This means that 25% of the 85% of SS will be taxable....roughly 20% of your SS will go to taxes.  

Taxes can get quite complicated, if you have much in the way of deductions, but for most people, buying an H&R Block DVD, or going to TaxAct online, can usually simplify the process.  Here's a pretty good summary of what most people will face in 2015...for tax year 2014.

http://www.tax-brackets.org/federaltaxtable


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## QuickSilver

Don M. said:


> If you earn Above $44K a year, 85% of your SS is deemed taxable....at whatever percentage your overall income puts you in.  For example, if your AGI (adjusted Gross Income) is between $37K and $90K for calendar year 2014, you will fall into the 25% tax bracket.  This means that 25% of the 85% of SS will be taxable....roughly 20% of your SS will go to taxes.
> 
> Taxes can get quite complicated, if you have much in the way of deductions, but for most people, buying an H&R Block DVD, or going to TaxAct online, can usually simplify the process.  Here's a pretty good summary of what most people will face in 2015...for tax year 2014.
> 
> http://www.tax-brackets.org/federaltaxtable



Thanks Don... that's how I understood it.   I will be getting my 1st check in a few weeks, it won't affect my tax bill this year.    When I have my 2014 taxes done, I will ask my accountant what how much withholding we will need for the 2015 taxes.  

This year is going to be difficult enough as I've collected my 3 little pensions... I tried to have Federal tax withheld from them, but each check is too small to have it deducted, so I will have to pay up..  I already knew that and increased the withholding on my regular salary.  I was able to get the State tax withheld on those pensions so that should be OK.     THEN.... I took out some money to buy my car... soooooooooooooo it will be time to pay the piper on that too.  My tax bill is going to suck.


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## Don M.

Yeah, taxes, in retirement, can present some interesting considerations.  Between Federal and State taxes, a person often has to do some "manipulation".  SS doesn't hold out State income taxes, so that can present some problems.  I have extra held out of my pension, IRA, etc., so that I get a nice stipend back from the IRS, which covers any money owed on my State taxes.  When it's all over for the year, my taxes usually balance out to less than $100, either owed or received.  It took a couple of years, after I retired, to figure out how much to have withheld, so I wouldn't get any "sticker shock" every year, and now, I just rob Peter to Pay Paul, and it comes out pretty even.


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## QuickSilver

Don M. said:


> Yeah, taxes, in retirement, can present some interesting considerations.  Between Federal and State taxes, a person often has to do some "manipulation".  SS doesn't hold out State income taxes, so that can present some problems.  I have extra held out of my pension, IRA, etc., so that I get a nice stipend back from the IRS, which covers any money owed on my State taxes.  When it's all over for the year, my taxes usually balance out to less than $100, either owed or received.  It took a couple of years, after I retired, to figure out how much to have withheld, so I wouldn't get any "sticker shock" every year, and now, I just rob Peter to Pay Paul, and it comes out pretty even.



Yeah.... I figure it will be a learning curve over the next few years..  I am fortunate as I live in a state that does not tax Social Security benefits.. so that's one worry I don't have... BUT they tax pensions.. so go figger.     I have also gone crazy this year with charitable donations in what may be a futile attempt to balance things out a bit...  We'll see..


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## LogicsHere

SS is taxable up to 85% but does not come into play unless other income exceeds certain amounts, $25,000 for singles; $32,000 for married I think.  To determine if your SS is taxable to any extent, the calculation is 1/2 of total SS plus your total income.  The actual percentage that is taxable will depend on how much over the "base" limits allowed it is.


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## QuickSilver

I'm wondering if by "total income" they mean only salary... or does that include IRA withdrawals..?   Those I think are taxed at a different rate aren't they?


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## LogicsHere

The instructions (for 2013 - I just had to redo this year for someone) read the following on the worksheet to be used in calculating how much of your SS is taxable:   Combine from Form 1040, lines 7, 8a, 9a, 10 through 14, 15b, 16b 17 through 19.
 
I think this is pretty inclusive of all income regardless of its type.


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## Don M.

QuickSilver said:


> I'm wondering if by "total income" they mean only salary... or does that include IRA withdrawals..?   Those I think are taxed at a different rate aren't they?



It depends upon which type of IRA you have.  If you have a Roth IRA, you pay taxes on the money you put in there, and the withdrawals are Not taxed.  A Traditional IRA works just the opposite...the money you put in is Not taxed, but when you start drawing money out, That money is taxed, and added to your Total Income.  There are pro's and con's to both types of IRA's...but the Most Important thing is To Have One...and to start contributing as early in life as possible.


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