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lev-tax
lev-tax, Tax Advisor
Category: Social Security
Satisfied Customers: 28082
Experience:  Taxes, Immigration, Labor Relations
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I retired when I was 57 through the State of NC,I did social

Customer Question

I retired when I was 57 through the State of NC,I did social security leveling. I will turn 62 on October 22, 2015 and my pay will drop from the State I have been told through a letter of $1,186.23. My question is how can I pay the least taxes to the federal government? Last year we made $104,000.00 and we paid in extra $3,448.00. I worked a part time job and earned $23,000.00 and my pay from the state was $36,000.00. Would like some advice on as to what I can do that would work best for me. Should I sign up for social security?
Submitted: 1 year ago.
Category: Social Security
Customer: replied 1 year ago.
I do not want to pay a monthly fee for this service I just want an answer. I have enough of monthly payments as it is. I thought getting older things would get better, but doctors bills and everyday life still goes on, but what can I make with my retirement of $36,000.00 without out paying more and more. Of course the $36,000.00 will go down since my pay is going to drop as I stated earlier. Please give me some good advice. I am just a high school graduate, country boy who wants to do what is right without having to feel like I am in a hole all the time.
Customer: replied 1 year ago.
Can you respond back here as we are talking like live chat?
Expert:  lev-tax replied 1 year ago.

The issue - if you will be at full retirement age when you start your social security benefits or below the full retirement age...
There is NO limit on earning.However - the issue is with your age - if you are getting social security benefits and are below your fill retirement age - your earning might affect your social security benefits.

If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit.For 2015 that limit is $15,720.

For 2016 that limit is not yet set. Most likely - it will be a little higher.

For that purposes - your earnings include wages and net self-employment income.

For instance - if you will have wages $23,000 in 2015 while still below your full retirement age - your social security benefits will be reduced by ( $23,000 - $15,720) / 2 = $3640

Usually - that reduction occurs when your wages are reported to the SSA - and the SSA will send a letter asking to pay back overpaid amount.
.
In additional - your social security benefits might be partly taxable.

A simple test is as following- take a half of social security benefits
- PLUS other taxable income
- if the total is less than $25000 (for singles) or $32,000 (for married couples filing jointly) - none of social security benefits would be taxable.
- if the total is more than the threshold - we would need to use a special worksheet to determine the taxable portion.
.

I will help to estimate possible tax liability.

for that we need a full list of you income filing status and deductions.

We may chat or have a phone conversation if needed.

Customer: replied 1 year ago.
I did not learn anything . This really did not help me.
Expert:  lev-tax replied 1 year ago.

Please be sure to ask for clarification if needed.

I am here to help you with all tax related issues.

If needed - we may discuss your issues over the phone - let me know and I will schedule a phone conversation.

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