Dear Rusty: I am getting hammered with taxes on my Social Security (SS). I am retired and draw a meager work pension and SS benefits. When my wife and I filed our joint tax return we owed the IRS a substantial amount of money – they took 85% of my SS in taxes. We are just barely over the minimal amount of income allowed for SS tax exemption. Is there anything I can do so I do not have to pay all this money at once at the end of the year? I didn’t get any tax advice when I started drawing my SS and the guy who prepared our tax return couldn’t have cared less. No one ever told me that I would get double-taxed on the SS that I worked so hard for. Any help or advice is appreciated, I cannot take another hit like this again. Signed: Double-Taxed
This recording presents the viewpoints of the AMAC Foundation’s Social Security Advisory Staff, trained and accredited under the National Social Security Advisors program of the National Social Security Association, LLC (NSSA). NSSA and the AMAC Foundation are not affiliated with or endorsed by the United States Government, the Social Security Administration, or any other state government. To request additional information, contact our Advisory Staff at 888-750-2622, or email us at [email protected].
I know that social taxes up to 85% of social security income.
What is the current tax rate on social security income?
Rose
When a portion of your Social Security Benefits is taxable, it is based on your personal tax rate. The amount that determines the portion of your Social Security benefits that are taxable is based on your Modified Adjusted Gross Income (MAGI). Your MAGI is determined by adding 50% of your Social Security benefits plus non-taxable interest to your Adjusted Gross Income (AGI).
For singles less than $25,000 in MAGI is non-taxable and less than $32,000 for married is non-taxable. Normally if your only income is your Social Security benefits you do not pay taxes on them. Singles having more than $34,000 in MAGI can pay taxes on up to 85 percent of their Social Security benefits. Married having more than $44,000 in MAGI can pay taxes on up to 85 percent of their Social Security benefits.
If you have other income besides your Social Security benefits, I recommend you have your tax advisor run an estimate of you each year to determine how much you pay in taxes on your Social Security benefits.
If we can help you further, please give our Advisory Service a call at 888-750-2622 or via email at [email protected]
Sharon L Kleczka RSSA®
AMAC Foundation
CONFIDENTIALITY NOTICE: The contents of this message, including any attachments, are confidential and are intended solely for the use of the person or entity to whom the message was addressed. If you are not the intended recipient of this message, please be advised that any dissemination, distribution, forwarding, printing, copying, or use of the contents of this message, and any attached documentation, is strictly prohibited. If you received this message in error, please notify the sender. Please also permanently delete all copies of the original message and any attached documentation. The opinions and interpretations expressed in this message are the viewpoints of the message’s author, a trained advisor accredited under the National Social Security Advisors program of the National Social Security Association, LLC (NSSA). The author, the NSSA, and the AMAC Foundation are not affiliated with or endorsed by the United States Government, the Social Security Administration, or any other state government.
living on social security only. Fully retired. Do we have to pay income tax?
George:
If your total reported income (technically referred to as your Modified Adjusted Gross Income–MAGI–for federal income tax purposes) is less than $32,000 for married couples filing jointly, then none of your Social Security benefit is taxable. If your MAGI is between $32,000 and $44,000, then up to 50% of your benefit is taxable. For a MAGI beyond $44,000, up to 85% of your benefit becomes taxable. For single filers, A MAGI less than $25,000 would mean no part of the benefit is taxable, and between $25,000 and $34,000 would result in up to 50% becoming taxable, while over $34,000 would cause up to 85% to be taxable.
If you have any further questions, please give our Social Security Advisory Service a call at 888-750-2622.
Thanks for contacting us!
Gerry Hafer
National Social Security Advisor
The AMAC Foundation
CONFIDENTIALITY NOTICE: The contents of this message, including any attachments, are confidential and are intended solely for the use of the person or entity to whom the message was addressed. If you are not the intended recipient of this message, please be advised that any dissemination, distribution, forwarding, printing, copying, or use of the contents of this message, and any attached documentation, is strictly prohibited. If you received this message in error, please notify the sender. Please also permanently delete all copies of the original message and any attached documentation. The opinions and interpretations expressed in this message are the viewpoints of the message’s author, a trained advisor accredited under the National Social Security Advisors program of the National Social Security Association, LLC (NSSA). The author, the NSSA, and the AMAC Foundation are not affiliated with or endorsed by the United States Government, the Social Security Administration, or any other state government.
My wife has not worked for 5 years and she is 59 years old if she continues not to work will she be able to collect Social security when she turns 67
Tim:
If your wife has earned 40 quarters (meaning generally that she has recorded 10 years or more of work during which she paid FICA tax and earned more than the minimum amount per quarter), she will be eligible for benefits. The actual benefit calculation is based on the highest 35 years of taxed earnings during her career, with any non-earning years factored in as zero. Each of the earnings figures from the years she worked and paid FICA tax are indexed to account for inflation, a step that basically equates historical earnings figures to their current value. If she has created a mySocial Security account (see: https://www.ssa.gov/myaccount/) she can quickly determine how many creditable years of earnings are on her record.
Thanks for contacting us. If we can help you with any further questions, please contact our Social Security Advisory Service at 888-750-2622.
Gerry Hafer
National Social Security Advisor
The AMAC Foundation
CONFIDENTIALITY NOTICE: The contents of this message, including any attachments, are confidential and are intended solely for the use of the person or entity to whom the message was addressed. If you are not the intended recipient of this message, please be advised that any dissemination, distribution, forwarding, printing, copying, or use of the contents of this message, and any attached documentation, is strictly prohibited. If you received this message in error, please notify the sender. Please also permanently delete all copies of the original message and any attached documentation. The opinions and interpretations expressed in this message are the viewpoints of the message’s author, a trained advisor accredited under the National Social Security Advisors program of the National Social Security Association, LLC (NSSA). The author, the NSSA, and the AMAC Foundation are not affiliated with or endorsed by the United States Government, the Social Security Administration, or any other state government.
I am 74. How much can I earn before my social security gets taxed?
Maureen
The taxation of your Social Security benefits is based on your modified adjusted gross income (MAGI). It is your adjusted gross income (AGI) found on the front page of your tax return plus 50% of your Social Security benefits plus nontaxable interest. It is based on your personal tax rate. Please consult with your tax advisor about the taxation of your benefits. Ask them to run you an estimate including your estimated earnings.
You will pay tax on up to 85 percent of your Social Security benefits, based on Internal Revenue Service (IRS) rules. If you:
file a federal tax return as an “individual” and your combined income* is
between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits.
more than $34,000, up to 85 percent of your benefits may be taxable.
file a joint return, and you and your spouse have a combined income* that is
between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits.
more than $44,000, up to 85 percent of your benefits may be taxable.
are married and file a separate tax return, you probably will pay taxes on your benefits.
Your adjusted gross income
+ Nontaxable interest
+ ½ of your Social Security benefits
= Your “combined income”
f we can help you further, please give our Advisory Service a call at 888-750-2622 or via email at [email protected]
Sharon L Kleczka RSSA®
AMAC Foundation
CONFIDENTIALITY NOTICE: The contents of this message, including any attachments, are confidential and are intended solely for the use of the person or entity to whom the message was addressed. If you are not the intended recipient of this message, please be advised that any dissemination, distribution, forwarding, printing, copying, or use of the contents of this message, and any attached documentation, is strictly prohibited. If you received this message in error, please notify the sender. Please also permanently delete all copies of the original message and any attached documentation. The opinions and interpretations expressed in this message are the viewpoints of the message’s author, a trained advisor accredited under the National Social Security Advisors program of the National Social Security Association, LLC (NSSA). The author, the NSSA, and the AMAC Foundation are not affiliated with or endorsed by the United States Government, the Social Security Administration, or any other state government.
My husband and I sold out home last year. (cleared $80k)
Our only income is S.S. Are we required to file income taxes?
Judy
We are Social Security Advisors, not tax advisors. As such, I am unable to answer your question. Please contact a tax advisor.
If we can help you further, please give our Advisory Service a call at 888-750-2622 or via email at [email protected]
Sharon L Kleczka RSSA®
AMAC Foundation
My husband receives 100% service connected va disability compensation which is non taxable income, does that count towards our total income for tax purposes when calculating if we need taxes withheld from social security? Or should we not count that as income? Thanks.
Rebekah:
Thanks for contacting the AMAC Foundation Social Security Advisory Service. IRS regulations stipulate that “Disability compensation and pension payments for disabilities paid either to veterans or their families” are not to be included in income (see https://www.irs.gov/pub/irs-pdf/p17.pdf, page 52). So, they would not be included in the calculation to determine the taxability of your Social Security benefit.
If we can be of any further assistance, please contact us at 888-750-2622 or by email at [email protected].
Gerry Hafer, Social Security advisor
AMAC Foundation
For tax year 2022, how much of my $21252.92 social security benefits can be taxed. I am single, not working and have less than$500 more taxable income, but I do have $4500 in non-taxable muni bonds income from this year?
John
We are not tax advisors, and when determining your tax liability, you should always consult with a tax advisor. I can however provide you with the Social Security rules pertaining to the taxation of Social Security benefits. Social Security looks at your modified adjusted gross income (MAGI) when determining if any of your Social Security benefits are taxable.
It is your AGI, plus any non-taxable interest, plus 50% of your Social Security benefits. With the income you are listing, your Social Security benefits will most likely not be subject to taxation. But as I mentioned previously, to confirm you should speak with a tax advisor.
These are items which are deducted from your AGI, but must be included in the calculation of your MAGI:
• • ½ of self-employment tax
• • Student loan interest
• • Tuition and fees deduction
• • Qualified tuition expenses
• • Passive income or loss
• • Rental Losses
• • IRA contributions and taxable Social Security payments
• • Exclusion for income for U.S. saving bonds.
• • Exclusion for adoption expenses
• • Tax-exempt interest
Line Modified AGI (nominal $) Taxable portion of income
Single
1 Less than 25,000 None
2 25,000–34,000 Lesser of—
• • 50 percent of benefit income; or
• • modified AGI in excess of $25,000
3 More than 34,000 Lesser of—
• • 85 percent of benefit income; or
• • amount from line 2 plus 85 percent of modified AGI in excess of $34,000
If you have further questions please contact us either by email at [email protected] or call (888)750-2622.
Sharon Kleczka RSSA
AMAC Foundation
CONFIDENTIALITY NOTICE: The contents of this message, including any attachments, are confidential and are intended solely for the use of the person or entity to whom the message was addressed. If you are not the intended recipient of this message, please be advised that any dissemination, distribution, forwarding, printing, copying, or use of the contents of this message, and any attached documentation, is strictly prohibited. If you received this message in error, please notify the sender. Please also permanently delete all copies of the original message and any attached documentation. The opinions and interpretations expressed in this message are the viewpoints of the message’s author, a trained advisor accredited under the National Social Security Advisors program of the National Social Security Association, LLC (NSSA). The author, the NSSA, and the AMAC Foundation are not affiliated with or endorsed by the United States Government, the Social Security Administration, or any other state government.
I make 22,000.from social security, plus 3,500.fro!m a annuity,I want to now have federal taxes withheld. How much should I take out?And what about state tax?
Hello Donna,
Unfortunately we are not trained in tax rules. Please consult a tax professional on how to handle your income tax withholding. Most states to not tax Social Security benefits. The states that do are:
Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, and Vermont. Please contact our free Social Security Advisory Service at 888-750-2622 if you have social security related questions.
Arlene Sharp
AMAC Foundation, Inc.
CONFIDENTIALITY NOTICE: The contents of this message, including any attachments, are confidential and are intended solely for the use of the person or entity to whom the message was addressed. If you are not the intended recipient of this message, please be advised that any dissemination, distribution, forwarding, printing, copying, or use of the contents of this message, and any attached documentation, is strictly prohibited. If you received this message in error, please notify the sender. Please also permanently delete all copies of the original message and any attached documentation. The opinions and interpretations expressed in this message are the viewpoints of the message’s author, a trained advisor accredited under the National Social Security Advisors program of the National Social Security Association, LLC (NSSA). The author, the NSSA, and the AMAC Foundation are not affiliated with or endorsed by the United States Government, the Social Security Administration, or any other state government.
My frist time doing my disibilty income tax and my id expired an i need a birth certificat to get a id and new social sercety card ho do i do my disibilty income tax
Jesse
To obtain a new Social Security card, you have two options. One is if you have a MySocialSecurity Account online, you may request a new card be sent to you online. The second option is to go to your local Social Security office, where will have to present your birth certificate and your identification, such as your ID card.
Your ID can be renewed at your local DMV office, and a new birth certificate can be ordered online through the county of your birth website. But you will have to show identification.
If you do not have a MySocialSecurity account online already, you will need your ID to create one. I recommend your first step be to go to your local DMV office and renew your ID.
If you have further questions please contact us at [email protected] or 888-750-2622.
Sharon Kleczka RSSA
AMAC Foundation
Hi, I am 74, worked 3 months. I filed my taxes, I am getting my federal taxes back. My question is do I have to pay social security taxes and/or Medicare taxes
Donna:
Unfortunately, yes. Here’s the official statement from the Social Security administration: “As long as you continue to work, even if you are receiving benefits, you will continue to pay Social Security taxes on your earnings. However, we will check your record every year to see whether the additional earnings you had will increase your monthly benefit.” For definition purposes, their use of the term “Social Security taxes” includes both the 6.2% Social Security tax and the 1.45% Medicare tax,
Gerry Hafer, Social Security Advisor
AMAC Foundation
http://www.AmacFoundation.org
CONFIDENTIALITY NOTICE: The contents of this message, including any attachments, are confidential and are intended solely for the use of the person or entity to whom the message was addressed. If you are not the intended recipient of this message, please be advised that any dissemination, distribution, forwarding, printing, copying, or use of the contents of this message, and any attached documentation, is strictly prohibited. If you received this message in error, please notify the sender. Please also permanently delete all copies of the original message and any attached documentation. The opinions and interpretations expressed in this message are the viewpoints of the message’s author, a trained advisor accredited under the National Social Security Advisors program of the National Social Security Association, LLC (NSSA). The author, the NSSA, and the AMAC Foundation are not affiliated with or endorsed by the United States Government, the Social Security Administration, or any other state government.
Thank you for this wonderful service. My wife and I were hit with a whopping total of $1,800 owed to the Feds on our 2022 Federal tax return. Our collective income was $33K as reported on our W2. Each year we file jointly. I suspect we should have been taxed at 50% and not 85% as stated by our tax consultant. Is it wise to complete a voluntary tax withholding form to have more taxes withheld? If so, how do we go about determining the amount to be withheld? We can’t continue to owe such large payments to the Feds since we are on a fixed income. Can a Vietnam veteran like myself receive any tax break relative to the SS tax withholding?
Alan,
Are you and your wife receiving Social Security benefits? If you are on Social Security look at your “Modified Adjusted Gross Income” (MAGI) when determining the tax liability of your Social Security benefits. Your MAGI is determined by adding your AGI (which you find on the front page of your 1040) and adding 50% of your Social Securing benefits plus any non-taxable interest. If this amount is between $32,000 and $44,000, you are taxed on up to 50% of your Social Benefits. Once you go over $44,000 you are taxed on up to 85% of your Social Security benefits. You are taxed at your personal tax rate.
You have a few different choices for covering these taxes. You can increase the tax withholding on your W-2, make estimated tax payments, or complete a W-4V to have taxes withheld from your Social Security payments and submit it to your local Social Security office. Use the following link to obtain and print the form: https://www.irs.gov/pub/irs-pdf/fw4v.pdf
Sharon Kleczka, Social Security Advisor
AMAC Foundation
http://www.AmacFoundation.org
CONFIDENTIALITY NOTICE: The contents of this message, including any attachments, are confidential and are intended solely for the use of the person or entity to whom the message was addressed. If you are not the intended recipient of this message, please be advised that any dissemination, distribution, forwarding, printing, copying, or use of the contents of this message, and any attached documentation, is strictly prohibited. If you received this message in error, please notify the sender. Please also permanently delete all copies of the original message and any attached documentation. The opinions and interpretations expressed in this message are the viewpoints of the message’s author, a trained advisor accredited under the National Social Security Advisors program of the National Social Security Association, LLC (NSSA). The author, the NSSA, and the AMAC Foundation are not affiliated with or endorsed by the United States Government, the Social Security Administration, or any other state government.