Please note that the deduction cell in the spreadsheet is editable and it is NOT tied to your single/married status for a few reasons: 1. The standard deduction changes every year, so by making this an editable box, you can use this spreadsheet this year, next year, and as long as Social Security taxation works the way it does. 2. The deduction changes based on how old you are, so for those above 65, you can put in you deduction while those under 65 can use theirs. 3. Many people do not take the standard deduction, and itemize their deduction instead. Since this field is fully editable, that means the spreadsheet will work for these folks as well. Hope this helps :) Isn't an error. It is intentional.
Social security was never supposed to be taxed. They added tax to prevent the program from going bankrupt. They don't adjust the thresholds to help the system go longer before bankruptcy. However it's still going to go bankrupt if they don't do something in the next 15 or so years.
I started my SS at 62 1/2, my wife who is 20 months younger than me started at 62. With my pension for working 25+ years we’re doing just fine.That was over 3 years ago & we never looked back. Haven't touched our investments other than to travel. I had two brothers die of cancer 3 years apart. One died at 62 & never drew a dime of his SS. The other died at at 65 & drew 10 months. Let's be honest here, the reason the Government is offering you a bigger payday at 70 is because they're banking on you not making it!
It sounds like you've made some wise decisions regarding your Social Security and pension, but I'm sorry to hear about the loss of your brothers. Planning for retirement is crucial, especially with uncertainties like health issues. Before it's too late, it might be a good idea to seek the guidance of a financial advisor who can help you make the most of your investments and ensure a comfortable retirement. They can help tailor a plan that suits your needs and goals, giving you peace of mind for the future. It's never too late to start planning for a secure financial future.
Absolutely, I completely agree. Getting a financial advisor early on is crucial. I've witnessed firsthand how much of a difference it can make. With my advisor's assistance, I've grown my investments to $930k by trading stocks, which has significantly boosted my confidence about the future. So, take your time to find someone you can trust. It's definitely worth it in the long run.
Absolutely and remember if you wait until 67 or 70 you will get nothing for 5 years. Also remember the time of your life is more important than anything else!
Best video I Ave seen on this yet. I made my own spreadsheet from watching Jeff S videos. I never knew that it was the lesser of the two. That explains why one year it was the full 85% and the next it was progressive. Thank you.
I volunteer as a TaxAide consultant at our Senior center, I have been asked many times "what part of my Social is Taxed" I usually say something vague, like it's way complicated! And they look at me like I am a dunce. - Now I have an explanation. Thanks
Just want to say thank you for the video and spreadsheet. I have been looking and looking and looking for a detailed explanation of how SS benefits are taxed (along with calculations) that goes beyond just an explanation of provisional income. The spreadsheet went a little haywire when I tried to change it to single but I was able to get it to work and confirmed my calculations. You're out here doing god's work, my friend.
Almost 80 and give my entire Social Security income, and more back to the government every April 15th. This is called the penalty for working hard and being successful. I have never had a tax refund in 60 years. So tired of paying for those who won't help pull the load.🙄
It's your money and your drop in the bucket they don't need. Deficit, ever heard of a black budget and red budget? Why does Congress continue to draw their full check when they leave? The hundreds of them forever? Taxed when I make it, taxed when I spend it, taxed when I save it. Nah, give me all of it!
52, planning now to avoid exactly this situation. Last couple of year it may be better to take a lower paying job to start Roth conversions, I don’t know but a tax guy would.
@@THEL0NEARRANGER It sounds to me like he makes so much money that he doesn't really need SS and it pays most of his taxes on his other income, which is probably quite substantial.
Thank you so much for this second video! It took a little while studying the spreadsheet before I got most of it from the first video. But I invest all of my retirement money (at least for now) into Roth accounts, and I was super confused about how that was going to fit into the calculations; it’s nice to know I could have a close to 0% tax rate by retirement since my Roth income wouldn’t be included in the calculations! I’m only 27, but I enjoy learning about all this now and I honestly should’ve pursued a career in accounting or finance 😆 I love the deep dives and attention to detail you have in your videos!
Truly commendable that you are already thinking about retirement! Congratulations! You also need to think about what your current tax bracket is, and going all in to Roth may or may not be optimal. Extreme example, if you are in the 32% tax bracket putting everything into Roth may not be desirable. You should also consider tax diversification in the future so that you can withdraw from different sources.
Great video as usual, Erik. I used your original video about SS taxes to calculate both my sister's taxable SS and my own (joint return) for 2023. With the help of your video I estimated her taxes for 2023 and when I actually did her taxes, I was within $2 of the final amount of her refund. For my own (a joint return) I was within $5 of our final amount owed/refunded after I did the taxes. (I'm in Texas so we have no state income tax to worry about.). Again, thanks for much for your helpful videos. I'll also be downloading the spreadsheet that you created. Let me know if you ever get licensed in Texas so in case I change my Medicare supplement, I can use your company.
Thank you Tom! Yeah, this spreadsheet will be much easier :) I'll definitely let you know if I get licensed there. Not in the cards yet, but never outside the realm of possibilities. Appreciate your support. Means a lot!
Thank you. I download the spreadsheet a few months ago, and started looking at the formulas. I wished I saw this video first :(. Great explanation. I am writing my own retirement calculator and I defaulted for now to 85% for all my SS income. Maybe I will try to use this knowledge to adjust my tax withdrawal.
I think you've got it right and it's good to know what's happening behind the software calculations on these inputs. That 35% add-on is double taxation by any definition and should be abolished, if not the whole thing.
Excellent description of how SS income is taxed. I’ll be 60 in 2 months and I plan on retiring at 64 years 8 months old from Dept. Of Defense with 36 years and 6 months of service. In today’s dollars my projected SS income is projected to be approximately $2750/month in December 2028. I was told by a coworker that if I start collecting at 62 and continue to work full-time until I officially retire SS will repay me back for the SS money lost from 62 until I retire at 64 years 8 months. I don’t believe this, it sounds too good to be true. BY the way New sub here
Hi Stephen, thank you for subscribing and watching :) Yeah, so if you take SS before your Full Retirement Age and you continue working, there are implications there. They will reduce your SS payments and take the dollar reductions and put them on the tail end once you reach your Full Retirement Age. We have a deeper dive into that specific question in this video starting at about the 1:07:30 mark: ua-cam.com/video/KXFqGra9qHI/v-deo.html
@@Theretirementnerdsyes I watched that video after this one. Thanks. My next question is do I get a COLA every year starting the following year when I turn 63 ? And on the tail end when I get paid back do I get the money added on a monthly basis or is it a lump sum ?
I guess in MY case it wouldn't be but I do need to correct my statement --- age 65 and above none of your SS is subject to CO state income tax. So if you take early SS, you are still subject to state income tax on some or all of it until you reach 65.
This is great! Cleared up so much for me. I hate to admit it, but I was one of those that thought the taxation happened at the discrete boundaries, such as 50% and 85%. I thought I'd have to pay tax on 85% of my social security, and it turns out, the amount is far less than that for me. This is my first year on it, and I ended up (prior to watching your super helpful video) having taxes voluntarily withheld at a much higher rate than I needed to. I should get a nice refund for this year, but next year, I'll be wiser - no point in lending the government money until getting a refund. I think I get misled because IRMAA uses fixed, discrete boundaries... one penny over and you are toast and have to pay the entire extra surcharge, so I think I wrongly assumed that SS would work that way, too. Thanks again!
Thank you so much sir you’ve really helped me, I’m 27 yet I’m on ssdi and they aren’t sure if I’ll ever be able to work but I want to should my medication go down in price. I just wanted to make sure that I 100% understood how this could affect me, you’ve got a new subscriber sir.
Thanks for the information and examples! Was always curious how SSI was taxed! Questions- 1. In example 1, only SSI= 0 taxes. Would they have to file taxes? 2. Taking the calculation through--The last example, to calculate actual taxes owed , take AGI $60,000 + $40,800=$100,800. Take $100,800 minus Standard Deduction $29,000= $71,800 is Taxable Income. $71,800 X .22= $15,796 is taxes owed. Is this correct?
For Point #1 - We nearly always recommend people at least file. Point #2 - Close... Your taxable income - the $71,800 in this example - will go through the marginal brackets. Depending on how you file (single vs joint) you have amounts that will be taxed at 10%, 12%, and 22%.
Thank you for the spreadsheet, It makes life easier. However, when using larger figures cells in column G on first tab and E on the second tab show ######, it's too narrow and the spreadsheet is locked and column width can't be changed. You may want to make it a bit wider.
This really helped me to understand the complex way SS is taxed (specific to 2023 tax year). Another great video, Erik! Will you be uploading an updated video for 2024 tax year, towards the first part of February? Thanks. - - Lyle
Thank you for watching! The thresholds haven't changed for 2024 or 2024, but if you download the spreadsheet from the website, we have 2024 and 2025 versions 🙂
The government gives you the COLA increase(which you can see). Then it takes it away at tax time(which you don't see). In fact, the taxable ss amount is part of your Modified Adjusted Gross Income. It is compared to the IRMAA thresholds and may subject you to additional IRMAA penalties. This decreases your monthly net ss benefit.
Exactly what they did with the Alternative Minimum Tax. It was supposed to soak only the "billionaires" (now "trillionaires"). But now it catches a larger and larger part of the "upper middle class" (soon to be the "middle middle class") - almost four million households. By the way, there are ways around it, if you can afford a few hundred thousand dollars for a first rate tax attorney. That's what those "billionaires" and "trillionaires" do - but not those who don't even make what those attorneys cost. So it's just another middle class tax.
Excellent video, thank you for putting this out there as there is so much confusion! The only thing that confuses me is the definition of "Combined Income" that uses the term "Adjusted Gross Income" or AGI. I prepare taxes, so to me your AGI is line 11 on the 1040 which already includes the taxable amount of your social security on line 6B that it calculated using the SS Benefits Worksheet which uses your tax free interest in the calculation. You would not add 1/2 of your SS benefits plus non-taxable interest to your AGI (line 11 of the 1040) to get your "combined income" or "Provisional Income". Is the term "adjusted gross income" being used differently in that equation vs what it means on 1040 line 11? It would make more sense to say "All other sources of Taxable income" instead of "Adjusted Gross Income". The only exception I am aware of would be any ROTH withdrawals as long as you met the 5 yr rule.
I stand corrected as I did a practice tax return and it does work out that the AGI on line 11 plus 1/2 of you SS plus non-taxable income is correct. I did a return for a single person with 30,000 in SS, 5000 in interest and 5005 in tax exempt interest. The AGI on line 11 ends up being $5005, so then you can add the $15,000 for 1/2 of SS and the 5005 in tax exempt interest to the $5005 AGI to get $25,010 which leads to $5 of your SS being taxable since you start out in the 50% range of taxability. But for people that do not know how to do a return and calculate their AGI, it would be easier to simply take 1/2 of your SS and add any other income to it except for ROTH distributions to see if you exceed the thresholds.
I just had my 2024 taxes done and didn't pay any taxes on my SS. My wife works part time and makes about 20K. We were still way under to pay any taxes on my SS.
When the SS tax elimination (You Earn It, You Keep It) is effective, does that mean if you start collecting SS at 70 and continue working full-time, 85% of your SS will not be added to your full-time pay and taxed by IRS?
Treating the Thresholds as progressive brackets results in the same totals. For the high earner with $94,000 of provisional income: Dollars below threshold 1: 0% x $32k = $0 Dollars within threshold 1: 50% x $12K = $6,000 Dollars above threshold 2: 85% x $50K = $42,500 Total: $48,500 of the Soc Sec benefit is taxable which, as you point out, exceeds the total benefit! 🙃
I haven't started collecting yet as I am still working at 65 and 4 months. Looking at January 2024 now. 100% sure I am starting then. It's so sad that they have not increased these amounts of 32k and 44k in 40 years. My wife is 5 years younger than me and makes good money as a nurse. Looks like that will hurt me tax wise when I start collecting. Can't believe people watch and do not subscribe. They are getting such valuable information at no cost. It's a no brainer to me. I would subscribe twice if I could. Now I am going watch the video with Zach.
Great question. Tax exempt income isn't taxed in this case, but it influences how much of your SS is taxable. Will need to ask those who made the tax rules why they did this. Lots of creative ways to make sure tax is paid...
I retired ten years ago and only receive what the government gives me.I have no other income. I have not paid a dime in taxes since I retired. Welcome to Canada.
I don't mind social security being taxed on principle, but I do think the income threshold you can have before getting taxed on it should be a little higher. I feel like it should be at least 60k or something of other income before social security is taxed. Overall it's a safety net program and if you don't really need that safety net, then taxing that social security makes sense. As an accountant I do see retirees that have a very high AGI and don't even need this social security money, so I wouldn't boo hoo over their social security being taxed.
Thank you for a clear explanation of this confusing subject. Perhaps I am missing something, but, when one starts Medicare B at or after age 65, Medicare B premiums are automatically taken from SSI recipient's monthly check once SSI benefits are begun. Since these premiums are mandatory, why are the premium payments included in taxable SSI amount? I hope my question makes sense. Thanks, Erik!
Hi Tina, I think I understand what you're asking. Unfortunately, no. Medicare premiums taken out of SS do not reduce the SS taxability portion. I don't have a good answer as to why though :(
With your 3rd scenario (high income couple), maybe I am confusing myself with other calculations that have thresholds, but I would have though that it would be just 50% of the $12,000 (the diff between the 2 thresholds) and then 35% of the amount over the $44,000 (in that case the $50,000). But you are indicating it's actually 50% of everything over the $32,000 and then the 35% over $44,000. Yikes. I saw that's when the straight 85% comes into play. I'm gonna download the spreadsheet and play with the numbers. Thanks.
@@Theretirementnerds I received the file in email but when I open with Numbers app on mac it doesn't work as expected. Please open this file with Numbers app on mac. Not sure how to share screen shot with you.
I’m 68 and at 65 I started taking my Social Security, but I couldn’t make more than 18,000 a year, so if I made $36,000 by going back to work, I would have to give them a dollar for every dollar I went over which means I have to give them back 18,000 so I had to wait till I was 66 and nine months to be able to make over 18,000 a year, so I was handcuffed that I couldn’t earn more money, so now that I am able to work, I still pay for Social Security out of my withholding taxes, ain’t that a kick in the head and my Social Security is taxable income at the end of the year. It’s a travesty.
How about paying in for years and not ever getting one red scent! I was a state employee for 30 years and screwed out of every penny of social security because of the GPO and WEP! REPEAL THEM NOW!!!
Question about your calculations, O7 is Taxable Income is this the amount at which I look at the tax table and identify the tax percent or is it Q7 amount that will determine the tax rate %??? Thanks in advance for an answer.
Make sure P7 meats your current standard deduction (Single/Joint under 65/over 65) then Q7 is your taxable income. For me under 65 and married filing jointly for 2024 it's $29,200. Over 65 its higher
The amount withheld does not decrease the income used to determine your SS taxability, if that makes sense. Medicare premiums and IRMAA, let's say total $3,000 and your income is $130,000. That $3,000 does not reduce your $130,000 down to $127,000 for the SS taxability calculation.
Question: In other videos I've seen that whatever goes over $32K up to 44k (when joint) will apply the tax $$ but you show such excess will need to cut down 50% and then thats the tax number (ex 2). can you confirm? thanks so much for the lesson
What about Medicare payments they will take from Social Security check? Does it work like with regular paycheck, when your health insurance payments are not taxable?
If I'm understanding this correctly, my maximum provisional income has to be under 32,000 joint or 25,000 single to avoid any tax on SS. Using made up number for ease of understanding, if our combined SS benefit is 25,000, our provisional income has to be under 19,500. This means our total income for married can be 19,500 + 29,200 (married standard deduction 2024) + 3,100 ( additional deduction for 65 married) = 51,800. Is this correct? Am I understanding this?
I work in Finance and I am so lost. I'll just wait and see what I'm left with. Everything about our Gov't., taxes, social security is confusing - probably intentionally. Signing up for Medicare was a nightmare.
@@jaguarreal9116 In this scenario we have 40, 000 taxable SS + 60,000 taxable other income = 100,000 total taxable income. You would then subtract the standard deduction from that say the current 29,200 for married filing jointly. Your taxable income then becomes $70,800 which puts you in the 12% bracket. The tax exempt income (Roth IRA) is not added into this equation because there is no tax). This whole formula he presented is only to determine the taxable portion of your SS it is not meant to calculate taxes on your actual income if that makes sense. This formula is fun to do but it's much easier to get this from a calculator, search "Social Security taxable benefit calculator" and you'll find something that will do all this for you. Then add that number to all of your other income you don't need to calculate provisional incomes and test it like he does here if you don't want to.
@@jaguarreal9116 In this scenario we have 40, 000 taxable SS + 60,000 taxable other income (which I assume is a 401K) = 100,000 total taxable income. You would then subtract the standard deduction from that say the current year 2024 which is $29,200 for married filing jointly. Your taxable income then becomes 100,000 - 29,200 = $70,800. Your total taxes (12% bracket) would be about $8,035 but could change based on what type of accounts you pull your taxable income from. The tax exempt income (assume Roth IRA) is not added into this equation because there is no tax). This whole formula he presented is only to determine the taxable portion of your SS it is not meant to calculate taxes on your actual income if that makes sense. There are online calculators that do what he showed for you. Disclaimer: I am not an accountant nor do I work in the financial sector I just like learning things and I'm nowhere near retirement. If anyone has a correction regarding my calculations please advise.
@@jaguarreal9116 60+40=100, 100 minus standard deduction for married filing jointly is 100-29= ~71. This puts them in the 12% tax bracket on $71k which is about $8k total taxes due.
Now I get why they are taxing me more on pension money! The calculator is for 2024 tax year and does not change deduction between joint and single. or take into consideration under 65? Maybe it's my old version of excel?
Hello! Those are customizable, manual entry fields. There are too many different variables and scenarios, especially those who itemize taxes, so type in your deduction and it'll work. Single vs Joint changes the threshold path. This means the spreadsheet will work for 2023 taxes and 2024 and into the future assuming they continue with this method. Hope that helps!
Say we have everything in a Roth. No pre-tax. No Debt. Yearly income from Social Security is 20K more than you need. No taxes on Social Security at this amount, married filing joint. What do you do with the excess cash in retirement? Where is the best place to invest without adding taxes to Social Security. Not working, no income other than Social Security.
It was a good surprise for me to find your site. Thank you for the very detailed explanation of the complicated subject. The year 2023 is the first when my husband and I have the only SSA benefit income that is around 62K. It seems that we are under 0% of tax pay. Can you please suggest should we still file the tax return?
So glad you found us! If you have no other credits, deductions, income, or anything else, technically, you don't need to. Many of our clients do, just so they have a record and the prep/filing would be free through the IRS' new tax prep software.
Taxes in the US is really squirrelly and convoluted, it has to be on purpose. I just had my taxes done (my 1st year with IRA Distributions) and I had carefully followed the IRS and my state tax brackets during the year, and was shocked, kinda, at the refunds I am getting back...No, they weren't astronomical, but they were a lot more than I'd expected, and much more when I was still working and had the mortgage interest deduction, etc., it's that AGI that's hard to know ahead of time...LOL. I've heard that some European countries have their tax system totally automated and they send you a letter with how much taxes you paid the previous year, and amount owed back or you still owe, and you can accept their findings or appeal...Much simpler for the majority of people...Anyway, I probably will not file for SS until 70.
@@Theretirementnerds LOL, exactly. I mean, for most people, the gov't already knows how much you make, whether you have investments, mortgages, etc. I asked Fidelity about this HSA Form 5498 and how was I to prove I had contributed if the form isn't available until May 17? They said just note your contribution, when the 5498 form is pushed, the gov't will know and if there's a discrepancy, they'll reach out to you! LOL, so right there - they already know or will know the same time I will?! 🤣The tax preparing industrial complex I suppose.
@@ph5915 There are some funny videos about people explaining the tax process right now and how illogical it is. Maybe one day it'll all get figured out. But then... how will we be able to make helpful UA-cam videos?! If it was all easy, our channel becomes useless :)
How is SS taxed on a dependant? I will be collecting at 62 when my child is 11. So for 8 years my child will collect 50% of my FRA (she'll be in HS when she's 19) Question. Does my child basically submit a tax return at the age of 11 every April?
I'm confused by the AGI amounts. If a married couple had $60,000 in income, and their standard deduction is about $30,000 for a couple over age 65, shouldn't their AGI be $30,000? Otherwise it would be gross income, not "adjusted" right? Please help me understand and thanks for videos.
Yea, but he championed it, the loudest voice in the room. Not to mention all the other things his 2 terms did, along with the moral majority . i even voted for him the 1st time. Lol
If you move overseas then it won’t be taxed. It will probably fall under the current limit of around $110,000 per year. Anything over that is taxable. I know because I lived overseas.
I don't mind that SS may be 50% taxable since the company didn't pay taxes are their contribution. My SS contributions were taxed, so 50% should be the max. Unfortunately, they decided to double tax 35% of SS at higher incomes. 50% + 85% = 135% We need to eliminate the 85% rate.
There is a link to the spreadsheet we used in the description of this video. Any tax software will do this for you as well. Doesn't always break out how it's working like the spreadsheet does. Just kicks out the final number.
Please note that the deduction cell in the spreadsheet is editable and it is NOT tied to your single/married status for a few reasons:
1. The standard deduction changes every year, so by making this an editable box, you can use this spreadsheet this year, next year, and as long as Social Security taxation works the way it does.
2. The deduction changes based on how old you are, so for those above 65, you can put in you deduction while those under 65 can use theirs.
3. Many people do not take the standard deduction, and itemize their deduction instead. Since this field is fully editable, that means the spreadsheet will work for these folks as well.
Hope this helps :)
Isn't an error. It is intentional.
Not a bug but a feature!
It is absolutely criminal that those taxable thresholds are not, and have never been, adjusted for inflation.
You're right. Even if they would just double them, it would make a big difference.
Pretty crazy, right?
It was done under the Reagan administration, and Congress since then hasn't lifted a finger to change it.
It is criminal!
Social security was never supposed to be taxed. They added tax to prevent the program from going bankrupt. They don't adjust the thresholds to help the system go longer before bankruptcy. However it's still going to go bankrupt if they don't do something in the next 15 or so years.
AMAZING content, best description ever of how SS is taxed. Way to go.
Thank you so much!
I started my SS at 62 1/2, my wife who is 20 months younger than me started at 62. With my pension for working 25+ years we’re doing just fine.That was over 3 years ago & we never looked back. Haven't touched our investments other than to travel. I had two brothers die of cancer 3 years apart. One died at 62 & never drew a dime of his SS. The other died at at 65 & drew 10 months. Let's be honest here, the reason the Government is offering you a bigger payday at 70 is because they're banking on you not making it!
It sounds like you've made some wise decisions regarding your Social Security and pension, but I'm sorry to hear about the loss of your brothers. Planning for retirement is crucial, especially with uncertainties like health issues. Before it's too late, it might be a good idea to seek the guidance of a financial advisor who can help you make the most of your investments and ensure a comfortable retirement. They can help tailor a plan that suits your needs and goals, giving you peace of mind for the future. It's never too late to start planning for a secure financial future.
Absolutely, I completely agree. Getting a financial advisor early on is crucial. I've witnessed firsthand how much of a difference it can make. With my advisor's assistance, I've grown my investments to $930k by trading stocks, which has significantly boosted my confidence about the future. So, take your time to find someone you can trust. It's definitely worth it in the long run.
Absolutely and remember if you wait until 67 or 70 you will get nothing for 5 years. Also remember the time of your life is more important than anything else!
Welcome to the club...😂
Only 5% wait to age 70, to collect it!
My head is kinda spinning. Will rewatch again. Hopefully I totally get it after the next viewing! :)
Luv these videos!
Thank you for watching! Be sure to download the spreadsheet and you can mess with your own numbers.
Best video I Ave seen on this yet. I made my own spreadsheet from watching Jeff S videos. I never knew that it was the lesser of the two. That explains why one year it was the full 85% and the next it was progressive. Thank you.
So glad it was helpful! Thank you for watching!
I volunteer as a TaxAide consultant at our Senior center, I have been asked many times "what part of my Social is Taxed" I usually say something vague, like it's way complicated! And they look at me like I am a dunce. - Now I have an explanation. Thanks
So you really were a dunce but in secret.
I have prepared taxes, ad a paid professional, for 22+ years. Best explanation I have ever seen in explaining how SS is taxed by the IRS.
Thank you so much for watching and writing this! Means a lot!
Just want to say thank you for the video and spreadsheet. I have been looking and looking and looking for a detailed explanation of how SS benefits are taxed (along with calculations) that goes beyond just an explanation of provisional income. The spreadsheet went a little haywire when I tried to change it to single but I was able to get it to work and confirmed my calculations. You're out here doing god's work, my friend.
Thank you so much!
Almost 80 and give my entire Social Security income, and more back to the government every April 15th. This is called the penalty for working hard and being successful. I have never had a tax refund in 60 years. So tired of paying for those who won't help pull the load.🙄
It's your money and your drop in the bucket they don't need. Deficit, ever heard of a black budget and red budget? Why does Congress continue to draw their full check when they leave? The hundreds of them forever? Taxed when I make it, taxed when I spend it, taxed when I save it. Nah, give me all of it!
52, planning now to avoid exactly this situation. Last couple of year it may be better to take a lower paying job to start Roth conversions, I don’t know but a tax guy would.
What are you doing wrong? I have been retired for over 10 years and have never paid any taxes. I am almost a multi millionaire.
@@THEL0NEARRANGER It sounds to me like he makes so much money that he doesn't really need SS and it pays most of his taxes on his other income, which is probably quite substantial.
Republicans say small government and no tax increases. Oh wait, who was president in 1984? Yep, Ronald Reagan.
Thank you so much for this second video! It took a little while studying the spreadsheet before I got most of it from the first video. But I invest all of my retirement money (at least for now) into Roth accounts, and I was super confused about how that was going to fit into the calculations; it’s nice to know I could have a close to 0% tax rate by retirement since my Roth income wouldn’t be included in the calculations!
I’m only 27, but I enjoy learning about all this now and I honestly should’ve pursued a career in accounting or finance 😆 I love the deep dives and attention to detail you have in your videos!
Thank you so much for watching! Most our viewers are 55+, so way to represent the younger generation! Appreciate your support!
Truly commendable that you are already thinking about retirement! Congratulations!
You also need to think about what your current tax bracket is, and going all in to Roth may or may not be optimal. Extreme example, if you are in the 32% tax bracket putting everything into Roth may not be desirable.
You should also consider tax diversification in the future so that you can withdraw from different sources.
Great video as usual, Erik. I used your original video about SS taxes to calculate both my sister's taxable SS and my own (joint return) for 2023. With the help of your video I estimated her taxes for 2023 and when I actually did her taxes, I was within $2 of the final amount of her refund. For my own (a joint return) I was within $5 of our final amount owed/refunded after I did the taxes. (I'm in Texas so we have no state income tax to worry about.). Again, thanks for much for your helpful videos. I'll also be downloading the spreadsheet that you created. Let me know if you ever get licensed in Texas so in case I change my Medicare supplement, I can use your company.
Thank you Tom! Yeah, this spreadsheet will be much easier :)
I'll definitely let you know if I get licensed there. Not in the cards yet, but never outside the realm of possibilities. Appreciate your support. Means a lot!
Thank you. I download the spreadsheet a few months ago, and started looking at the formulas. I wished I saw this video first :(. Great explanation. I am writing my own retirement calculator and I defaulted for now to 85% for all my SS income. Maybe I will try to use this knowledge to adjust my tax withdrawal.
This is so bad. Not only the tax that is taken away, IRMAA gets triggered based on this provisional income. Thank you for this informative video.
Thank you for watching!
You need a lot of provisional income to trigger IRMMA
Thanks for sharing this information. We just recently retired and looking at how SS is being taxed. Very helpful.
So glad it was helpful! Thank you for watching!
This is a great video. Thanks for explaining this. Now I can create my own spreadsheet
Thank you so much for watching!
I think you've got it right and it's good to know what's happening behind the software calculations on these inputs. That 35% add-on is double taxation by any definition and should be abolished, if not the whole thing.
Thank you for posting this helpful video
Thank you for watching :)
Excellent description of how SS income is taxed. I’ll be 60 in 2 months and I plan on retiring at 64 years 8 months old from Dept. Of Defense with 36 years and 6 months of service.
In today’s dollars my projected SS income is projected to be approximately $2750/month in December 2028. I was told by a coworker that if I start collecting at 62 and continue to work full-time until I officially retire SS will repay me back for the SS money lost from 62 until I retire at 64 years 8 months. I don’t believe this, it sounds too good to be true. BY the way New sub here
Hi Stephen, thank you for subscribing and watching :)
Yeah, so if you take SS before your Full Retirement Age and you continue working, there are implications there. They will reduce your SS payments and take the dollar reductions and put them on the tail end once you reach your Full Retirement Age.
We have a deeper dive into that specific question in this video starting at about the 1:07:30 mark:
ua-cam.com/video/KXFqGra9qHI/v-deo.html
@@Theretirementnerdsyes I watched that video after this one. Thanks. My next question is do I get a COLA every year starting the following year when I turn 63 ? And on the tail end when I get paid back do I get the money added on a monthly basis or is it a lump sum ?
Terrific breakdown of a complicated subject.
Thank you David! Appreciate you!
Colorado no longer taxes ANY SS income. It's a recent change.
Thanks. I live in Colorado and will verify it, but even if it stayed taxed, the deduction make it $0 for me anyway.
No state taxes, but isn't it still taxed on the federal income taxes if you exceed the amount levels?
I guess in MY case it wouldn't be but I do need to correct my statement --- age 65 and above none of your SS is subject to CO state income tax. So if you take early SS, you are still subject to state income tax on some or all of it until you reach 65.
That's only the state tax & not the Federal tax!
@@GloriaWadzinski It is taxed by the federal government if over $25,000 for singles and $32,000 for couples in all states.
This is great! Cleared up so much for me. I hate to admit it, but I was one of those that thought the taxation happened at the discrete boundaries, such as 50% and 85%. I thought I'd have to pay tax on 85% of my social security, and it turns out, the amount is far less than that for me. This is my first year on it, and I ended up (prior to watching your super helpful video) having taxes voluntarily withheld at a much higher rate than I needed to. I should get a nice refund for this year, but next year, I'll be wiser - no point in lending the government money until getting a refund. I think I get misled because IRMAA uses fixed, discrete boundaries... one penny over and you are toast and have to pay the entire extra surcharge, so I think I wrongly assumed that SS would work that way, too. Thanks again!
Thank you so much for watching! Yes, you are correct on IRMAA... slip by a penny and it bumps you up a bracket :(
Neither social security nor any other public pension (govt/military pensions) should be taxed by state, local or federal, in my opinion.
Military yes absolutely no tax. Government- No way, they created this mess!
@@edwardglatzmayer5466 federal civilian retirement…not elected or political appointees…
@@edwardglatzmayer5466 government didn’t, politicians did.
Politicians live free off taxpayer money even after they leave the office.
@@edwardglatzmayer5466 What are you trying to say?? Check your post it makes no sense to me.
Thank you so much sir you’ve really helped me, I’m 27 yet I’m on ssdi and they aren’t sure if I’ll ever be able to work but I want to should my medication go down in price. I just wanted to make sure that I 100% understood how this could affect me, you’ve got a new subscriber sir.
So glad this was helpful! Thank you for subscribing and we hope to keep putting out useful videos for you!
If you can read, type like you are doing, then you should be able to work. IMHO.
Thanks for the information and examples! Was always curious how SSI was taxed!
Questions-
1. In example 1, only SSI= 0 taxes. Would they have to file taxes?
2. Taking the calculation through--The last example, to calculate actual taxes owed , take AGI $60,000 + $40,800=$100,800.
Take $100,800 minus Standard Deduction $29,000= $71,800 is Taxable Income.
$71,800 X .22= $15,796 is taxes owed.
Is this correct?
For Point #1 - We nearly always recommend people at least file.
Point #2 - Close...
Your taxable income - the $71,800 in this example - will go through the marginal brackets.
Depending on how you file (single vs joint) you have amounts that will be taxed at 10%, 12%, and 22%.
It was fantastic presentation thanks a lot !!!!!!!!!!!!!!!!!!!!!!!!
So glad it was helpful! Thank you!!
Thank you for the spreadsheet, It makes life easier. However, when using larger figures cells in column G on first tab and E on the second tab show ######, it's too narrow and the spreadsheet is locked and column width can't be changed. You may want to make it a bit wider.
Shoot me an email and I'll see if I can get you a better version.
Erik@theretirementnerds.com
Nice video and very clearly explained, thanks!
Thank you so much!
Thank you very much for a video and a spreadsheet. Of course, I just subscribe it. I appreciate so much.
Of course! Thank you for watching!
This really helped me to understand the complex way SS is taxed (specific to 2023 tax year). Another great video, Erik! Will you be uploading an updated video for 2024 tax year, towards the first part of February? Thanks. - - Lyle
Thank you for watching!
The thresholds haven't changed for 2024 or 2024, but if you download the spreadsheet from the website, we have 2024 and 2025 versions 🙂
Excellent explanation. Thanks.
Thank you for watching!
Nicely explained. Very clear. Thanks.
Thank you so much!
Wow, why haven’t they adjusted the threshold since 1984? That’s absolutely ridiculous.
It is pretty wild, isn't it?
This is unexplainable.
Because it's hidden. Meaning, the amount isn't seen or well known amongst the hoi poli and they aren't clamoring for an adjustment.
The government gives you the COLA increase(which you can see). Then it takes it away at tax time(which you don't see). In fact, the taxable ss amount is part of your Modified Adjusted Gross Income. It is compared to the IRMAA thresholds and may subject you to additional IRMAA penalties. This decreases your monthly net ss benefit.
Exactly what they did with the Alternative Minimum Tax. It was supposed to soak only the "billionaires" (now "trillionaires"). But now it catches a larger and larger part of the "upper middle class" (soon to be the "middle middle class") - almost four million households.
By the way, there are ways around it, if you can afford a few hundred thousand dollars for a first rate tax attorney. That's what those "billionaires" and "trillionaires" do - but not those who don't even make what those attorneys cost. So it's just another middle class tax.
Yeah the joint threshold hasn’t changed since I was injured really ticks me off.
Hasn't changed since it was implemented 40 years ago... 😬
That was incredibly clear and useful
So glad it was helpful! Thank you for watching!
Taxes on my Social Security? Thought it was tax exempt! Haven't filed in years!
Very instructional video Eric!! How about income from real estate rentals when figuring social security income taxes??
Hi Jeff! Goes into the AGI number on the chart 🙂
yes, subscribed. Great video.
Thank you!
Excellent video, thank you for putting this out there as there is so much confusion! The only thing that confuses me is the definition of "Combined Income" that uses the term "Adjusted Gross Income" or AGI. I prepare taxes, so to me your AGI is line 11 on the 1040 which already includes the taxable amount of your social security on line 6B that it calculated using the SS Benefits Worksheet which uses your tax free interest in the calculation. You would not add 1/2 of your SS benefits plus non-taxable interest to your AGI (line 11 of the 1040) to get your "combined income" or "Provisional Income". Is the term "adjusted gross income" being used differently in that equation vs what it means on 1040 line 11? It would make more sense to say "All other sources of Taxable income" instead of "Adjusted Gross Income". The only exception I am aware of would be any ROTH withdrawals as long as you met the 5 yr rule.
I stand corrected as I did a practice tax return and it does work out that the AGI on line 11 plus 1/2 of you SS plus non-taxable income is correct. I did a return for a single person with 30,000 in SS, 5000 in interest and 5005 in tax exempt interest. The AGI on line 11 ends up being $5005, so then you can add the $15,000 for 1/2 of SS and the 5005 in tax exempt interest to the $5005 AGI to get $25,010 which leads to $5 of your SS being taxable since you start out in the 50% range of taxability. But for people that do not know how to do a return and calculate their AGI, it would be easier to simply take 1/2 of your SS and add any other income to it except for ROTH distributions to see if you exceed the thresholds.
I just had my 2024 taxes done and didn't pay any taxes on my SS. My wife works part time and makes about 20K. We were still way under to pay any taxes on my SS.
When the SS tax elimination (You Earn It, You Keep It) is effective, does that mean if you start collecting SS at 70 and continue working full-time, 85% of your SS will not be added to your full-time pay and taxed by IRS?
Is disability treated the same as social security as far as taxes are concerned? Thank you for your time. I enjoy your videos.
Yes, it is treated the same, unfortunately.
Thank you for watching!!
Treating the Thresholds as progressive brackets results in the same totals. For the high earner with $94,000 of provisional income:
Dollars below threshold 1: 0% x $32k = $0
Dollars within threshold 1: 50% x $12K = $6,000
Dollars above threshold 2: 85% x $50K = $42,500
Total: $48,500 of the Soc Sec benefit is taxable which, as you point out, exceeds the total benefit! 🙃
But the taxable amount is the lesser of your $48,500 and the $40,800 from calculation 2. So 'only' $40,800 of the benefit is taxable.
I haven't started collecting yet as I am still working at 65 and 4 months. Looking at January 2024 now. 100% sure I am starting then. It's so sad that they have not increased these amounts of 32k and 44k in 40 years. My wife is 5 years younger than me and makes good money as a nurse. Looks like that will hurt me tax wise when I start collecting. Can't believe people watch and do not subscribe. They are getting such valuable information at no cost. It's a no brainer to me. I would subscribe twice if I could. Now I am going watch the video with Zach.
I think you'll LOVE the video with Zacc 🙂
Can't you file as "married filing single" and use the single rate for you? I don't know.
Thank you for the video, very-very helpful!
My question still is why Tax Exempt Income is part of provisional income?
Great question. Tax exempt income isn't taxed in this case, but it influences how much of your SS is taxable. Will need to ask those who made the tax rules why they did this. Lots of creative ways to make sure tax is paid...
Because tax exempt bonds are mostly owned by wealthier people, and they wanted to soak the rich.
I retired ten years ago and only receive what the government gives me.I have no other income. I have not paid a dime in taxes since I retired. Welcome to Canada.
Excellent information!
Thank you Jodie!
Very informative! Thank you🥰
So glad it was helpful!
I don’t even worry about this, nothing I can do, ours will be 85% taxed our entire life.
Pensions, interest, dividends, etc way over
I don't mind social security being taxed on principle, but I do think the income threshold you can have before getting taxed on it should be a little higher. I feel like it should be at least 60k or something of other income before social security is taxed. Overall it's a safety net program and if you don't really need that safety net, then taxing that social security makes sense. As an accountant I do see retirees that have a very high AGI and don't even need this social security money, so I wouldn't boo hoo over their social security being taxed.
Thank you so much!
Thank you for watching!
What taxes? I've NEVER paid income tax on my Social Security, because it's my sole income and my income is below the federal poverty level.
You're not rich, and you're not going to benefit .
This is so frustrating and hard to comprehend how what was a "pension fund" moved to "general fund" and then taxed...!!!
Thank you for a clear explanation of this confusing subject. Perhaps I am missing something, but, when one starts Medicare B at or after age 65, Medicare B premiums are automatically taken from SSI recipient's monthly check once SSI benefits are begun. Since these premiums are mandatory, why are the premium payments included in taxable SSI amount? I hope my question makes sense. Thanks, Erik!
Hi Tina, I think I understand what you're asking.
Unfortunately, no. Medicare premiums taken out of SS do not reduce the SS taxability portion. I don't have a good answer as to why though :(
Thanks, seem like so much re SS and Medicare has little foundation in sense or logic. @@Theretirementnerds
Medicare B payments are not mandatory, because signing up for Part B is not mandatory. Your choice.
With your 3rd scenario (high income couple), maybe I am confusing myself with other calculations that have thresholds, but I would have though that it would be just 50% of the $12,000 (the diff between the 2 thresholds) and then 35% of the amount over the $44,000 (in that case the $50,000).
But you are indicating it's actually 50% of everything over the $32,000 and then the 35% over $44,000. Yikes. I saw that's when the straight 85% comes into play.
I'm gonna download the spreadsheet and play with the numbers.
Thanks.
Definitely download it and mess around. Thank you so much for watching!
If you calculate it your first way, it should be 50% of the $12,000, plus 85% of anything over $44,000 (until 85% of your full benefit is taxed).
@@captsorghum this 👍
Hi guys, excellent video. Is this spreadsheet available for mac users? Thanks.
Yes! The link in the description should work. Is it not working for you?
@@Theretirementnerds I received the file in email but when I open with Numbers app on mac it doesn't work as expected. Please open this file with Numbers app on mac. Not sure how to share screen shot with you.
@@Theretirementnerds I can download the spreadsheet but when I open with Numbers app on mac it doesn't work correctly.
Good video, sir.
However, it would have been nice if you had gone over at least one example for a single person instead of only for a married couple.
We need to STOP taxing Social Security benefits period!
So you want SS to be depleted and become insolvent earlier than 2034? Not a good move.
I’m 68 and at 65 I started taking my Social Security, but I couldn’t make more than 18,000 a year, so if I made $36,000 by going back to work, I would have to give them a dollar for every dollar I went over which means I have to give them back 18,000 so I had to wait till I was 66 and nine months to be able to make over 18,000 a year, so I was handcuffed that I couldn’t earn more money, so now that I am able to work, I still pay for Social Security out of my withholding taxes, ain’t that a kick in the head and my Social Security is taxable income at the end of the year. It’s a travesty.
North Carolina income tax uses your federal 1040 form to calculate your tax.
That it totally crazy not changed, wow wages and the economy didn’t stand still.
How about paying in for years and not ever getting one red scent! I was a state employee for 30 years and screwed out of every penny of social security because of the GPO and WEP! REPEAL THEM NOW!!!
Thank you for the important information 🇺🇸🇵🇷🌎✌️
Would it be smarter to transfer the 401k before I retire (gradually) to a Roth IRA, so money I pull out will not be taxed OR counted as income?
This video goes over that in more detail:
ua-cam.com/video/ZetbFdEqi2A/v-deo.html
If I am married but filing individually, can i use the "single" thresholds?
Yes :)
Those thresholds are more about filing status that marital status. Thank you for pointing that out!
Looking for the calculator. How to download it for taxable income with brackets
Here's where you can get it:
theretirementnerds.com/social-security-worksheet/
Question about your calculations, O7 is Taxable Income is this the amount at which I look at the tax table and identify the tax percent or is it Q7 amount that will determine the tax rate %??? Thanks in advance for an answer.
Make sure P7 meats your current standard deduction (Single/Joint under 65/over 65) then Q7 is your taxable income. For me under 65 and married filing jointly for 2024 it's $29,200. Over 65 its higher
Does the amount the government withholds for IRMA be included in my Social Security income for tax purposes?
The amount withheld does not decrease the income used to determine your SS taxability, if that makes sense. Medicare premiums and IRMAA, let's say total $3,000 and your income is $130,000. That $3,000 does not reduce your $130,000 down to $127,000 for the SS taxability calculation.
@@Theretirementnerds Thanks! I didn't know how to properly word the question but you got it!
@@chrislindsay3104 happy to help! You worded it great 🙂
If you convert IRA to ROTH where does that value go in the calculator ?
The IRA to Roth conversion IS income! So if you convert $50k than add the $50k to income. When you pull out the Roth it is NOT income.
Question: In other videos I've seen that whatever goes over $32K up to 44k (when joint) will apply the tax $$ but you show such excess will need to cut down 50% and then thats the tax number (ex 2). can you confirm? thanks so much for the lesson
What about Medicare payments they will take from Social Security check? Does it work like with regular paycheck, when your health insurance payments are not taxable?
Medicare Part B premiums do not reduce your taxable income, unfortunately :(
So in scenario 2, you’d pay zero tax after standard deduction, right ?
Correct! Take the number, subtract the deduction
Great video.. Where is the link to the software?
Thank you! It is in the description of this video. Happy to email it to you as well if you want. My email is erik@90daysfromretirement.com
If I'm understanding this correctly, my maximum provisional income has to be under 32,000 joint or 25,000 single to avoid any tax on SS. Using made up number for ease of understanding, if our combined SS benefit is 25,000, our provisional income has to be under 19,500. This means our total income for married can be 19,500 + 29,200 (married standard deduction 2024) + 3,100 ( additional deduction for 65 married) = 51,800. Is this correct? Am I understanding this?
I work in Finance and I am so lost. I'll just wait and see what I'm left with. Everything about our Gov't., taxes, social security is confusing - probably intentionally. Signing up for Medicare was a nightmare.
You work in finance and you can’t grasp this? It’s not that difficult.
@@OShackHennessy Lol, maybe not for you.
@@jaguarreal9116 In this scenario we have 40, 000 taxable SS + 60,000 taxable other income = 100,000 total taxable income. You would then subtract the standard deduction from that say the current 29,200 for married filing jointly. Your taxable income then becomes $70,800 which puts you in the 12% bracket. The tax exempt income (Roth IRA) is not added into this equation because there is no tax). This whole formula he presented is only to determine the taxable portion of your SS it is not meant to calculate taxes on your actual income if that makes sense. This formula is fun to do but it's much easier to get this from a calculator, search "Social Security taxable benefit calculator" and you'll find something that will do all this for you. Then add that number to all of your other income you don't need to calculate provisional incomes and test it like he does here if you don't want to.
@@jaguarreal9116 In this scenario we have 40, 000 taxable SS + 60,000 taxable other income (which I assume is a 401K) = 100,000 total taxable income. You would then subtract the standard deduction from that say the current year 2024 which is $29,200 for married filing jointly. Your taxable income then becomes 100,000 - 29,200 = $70,800. Your total taxes (12% bracket) would be about $8,035 but could change based on what type of accounts you pull your taxable income from. The tax exempt income (assume Roth IRA) is not added into this equation because there is no tax). This whole formula he presented is only to determine the taxable portion of your SS it is not meant to calculate taxes on your actual income if that makes sense. There are online calculators that do what he showed for you. Disclaimer: I am not an accountant nor do I work in the financial sector I just like learning things and I'm nowhere near retirement. If anyone has a correction regarding my calculations please advise.
@@jaguarreal9116 60+40=100, 100 minus standard deduction for married filing jointly is 100-29= ~71. This puts them in the 12% tax bracket on $71k which is about $8k total taxes due.
Hopefully they will make changes to this soon
Why would tax exempt income be counted in the calculations.
It’s really insane/unfair how we get taxed for our SS after paying the income taxes in the past when we were working! Double taxed!
I have a tax-exempt pension. Does that count as provisional income?
Tough to say. It is most likely not, however, without seeing the tax return, we wouldn't know on that one. Some are... some aren't...
After you come up with the final taxable dollar amount using your calculator are you still granted the married filing jointly standard deduction??
Yes, correct. This video goes over the implications of finding your SS number and how to use it:
ua-cam.com/video/ZetbFdEqi2A/v-deo.html
How do I find the calculator referenced?
A link to it is in the description of that video. My email is erik@90daysfromretirement.com as well if you want to email me and I can send it
Now I get why they are taxing me more on pension money!
The calculator is for 2024 tax year and does not change deduction between joint and single. or take into consideration under 65? Maybe it's my old version of excel?
Hello! Those are customizable, manual entry fields. There are too many different variables and scenarios, especially those who itemize taxes, so type in your deduction and it'll work.
Single vs Joint changes the threshold path.
This means the spreadsheet will work for 2023 taxes and 2024 and into the future assuming they continue with this method.
Hope that helps!
when calculating the 2nd threshold, do we multiply by .35 or is it by .85 .
I kno you are busy, but can I still claim a personal deduction when I file after retirement?
Yes, if you file taxes you still do deductions into retirement.
Say we have everything in a Roth. No pre-tax. No Debt. Yearly income from Social Security is 20K more than you need. No taxes on Social Security at this amount, married filing joint. What do you do with the excess cash in retirement? Where is the best place to invest without adding taxes to Social Security. Not working, no income other than Social Security.
You could have $40,000 in SS and another $20,000 in income still no Federal tax.
It was a good surprise for me to find your site. Thank you for the very detailed explanation of the complicated subject. The year 2023 is the first when my husband and I have the only SSA benefit income that is around 62K. It seems that we are under 0% of tax pay. Can you please suggest should we still file the tax return?
So glad you found us!
If you have no other credits, deductions, income, or anything else, technically, you don't need to.
Many of our clients do, just so they have a record and the prep/filing would be free through the IRS' new tax prep software.
Taxes in the US is really squirrelly and convoluted, it has to be on purpose. I just had my taxes done (my 1st year with IRA Distributions) and I had carefully followed the IRS and my state tax brackets during the year, and was shocked, kinda, at the refunds I am getting back...No, they weren't astronomical, but they were a lot more than I'd expected, and much more when I was still working and had the mortgage interest deduction, etc., it's that AGI that's hard to know ahead of time...LOL. I've heard that some European countries have their tax system totally automated and they send you a letter with how much taxes you paid the previous year, and amount owed back or you still owe, and you can accept their findings or appeal...Much simpler for the majority of people...Anyway, I probably will not file for SS until 70.
Part of me definitely wishes everything was automated... a big part of me.
@@Theretirementnerds LOL, exactly. I mean, for most people, the gov't already knows how much you make, whether you have investments, mortgages, etc. I asked Fidelity about this HSA Form 5498 and how was I to prove I had contributed if the form isn't available until May 17? They said just note your contribution, when the 5498 form is pushed, the gov't will know and if there's a discrepancy, they'll reach out to you! LOL, so right there - they already know or will know the same time I will?! 🤣The tax preparing industrial complex I suppose.
@@ph5915 There are some funny videos about people explaining the tax process right now and how illogical it is. Maybe one day it'll all get figured out. But then... how will we be able to make helpful UA-cam videos?! If it was all easy, our channel becomes useless :)
Both my government pensions are 60.700. SSN is going to be taxed so high what’s the advantage to getting it
Social Security Number?
@@SandfordSmythe lol
Thanks
How is SS taxed on a dependant? I will be collecting at 62 when my child is 11. So for 8 years my child will collect 50% of my FRA (she'll be in HS when she's 19) Question. Does my child basically submit a tax return at the age of 11 every April?
Who determines if calculation 1 or 2 used? IRS? CPA?
Whichever ends up being a lower amount to you is the one used.
I'm confused by the AGI amounts. If a married couple had $60,000 in income, and their standard deduction is about $30,000 for a couple over age 65, shouldn't their AGI be $30,000? Otherwise it would be gross income, not "adjusted" right? Please help me understand and thanks for videos.
Is my VA disability compensation calculated in any way to determine how much of my social security retirement will be taxed?
VA disability dollars are not used in this calculation 🙂
what about if your income is a defined company benefit plan like 40K a year?
When you said Social Security wasn't taxable until 1984, I had to see who was President. It was Ronald Reagan.
Bipartisan
And again the the taxable threshold was raised in ‘93 and also bipartisan.
Yea, but he championed it, the loudest voice in the room. Not to mention all the other things his 2 terms did, along with the moral majority . i even voted for him the 1st time. Lol
Yup, that old vodoo economics bit, and the trickle-down money bit sure had you fooled.
@@SandfordSmythe Did he veto it? Nein
Soon, there is no federal tax on SSi
There has never been a tax on SSI
If you move overseas then it won’t be taxed. It will probably fall under the current limit of around $110,000 per year. Anything over that is taxable. I know because I lived overseas.
If you move to another country, would you be able to receive social security from the US?
I don't mind that SS may be 50% taxable since the company didn't pay taxes are their contribution. My SS contributions were taxed, so 50% should be the max. Unfortunately, they decided to double tax 35% of SS at higher incomes. 50% + 85% = 135% We need to eliminate the 85% rate.
Is there an online calculator like the one you’re using anywhere?
There is a link to the spreadsheet we used in the description of this video.
Any tax software will do this for you as well. Doesn't always break out how it's working like the spreadsheet does. Just kicks out the final number.
No tax