How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lane Your Own Question
Lane
Lane, JD,CFP, MBA, CRPS
Category: Social Security
Satisfied Customers: 10136
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial, Social Security & Tax advice since 1986
1929974
Type Your Social Security Question Here...
Lane is online now
A new question is answered every 9 seconds

Marla. I 't understand why I have to pay taxes on my social

Customer Question

Marla . I don't understand why I have to pay taxes on my social security
JA: Thanks. Can you give me any more details about your issue?
Customer: My husband is 66 still working. I am 62 collecting my social security also. Both are working but when we filed taxes we were told we had to pay taxes on our social security. We do not understand
JA: OK got it. Last thing — Social Security Experts generally expect a deposit of about $18 to help with your type of question (you only pay if satisfied). Now I'm going to take you to a page to place a secure deposit with JustAnswer. Don't worry, this chat is saved. After that, we will finish helping you.
Submitted: 9 months ago.
Category: Social Security
Customer: replied 9 months ago.
This better not be a scam
Expert:  Lane replied 9 months ago.

Hi,

...,

I'm so sorry ... someone else had this locked ... thanks for asking for me

...

I hold a JD (Juris Doctorate, a doctoral degree in the law), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security & Medicare, estate, corporate & tax advice since 1986.

...

let me help you work through this...

Expert:  Lane replied 9 months ago.

No more than 85% and anyone's social security is taxed ... and for many it's zero ... here's the way the formula works

Expert:  Lane replied 9 months ago.

First, let me define what SSA calls "combined income." (it's not total income) ... it's 1/2 of your social security plus other household taxable income.

Expert:  Lane replied 9 months ago.

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 acombined 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.

...

and again, *

...

Your adjusted gross income
+ Nontaxable interest
+ ½ of your Social Security benefits
= Your "combined income"

Customer: replied 9 months ago.
I still don't under stand we were told after you turned 66 you can work and not pay
Expert:  Lane replied 9 months ago.

You can read more about this directly from Social Security: https://www.ssa.gov/planners/taxes.html

...

Who told you that? (COMPLETELY wrong)

...

What's magic about 66 is it means you've reached full retirement age and your social security can't be REDUCED because of other earnings

...

But that has nothing to do with the taxation of it

Customer: replied 9 months ago.
We itemized every year but they never tell you when you apply for ss that you will be taxed for it
Customer: replied 9 months ago.
do we need to have taxes taken put of our ss
Expert:  Lane replied 9 months ago.

It has noting to do with itemizing ... the test is based on Modified Adjusted Gross Income (before itemized deduction (or standard deduction if that;s what applies) come into play)

...

Essentially AGI with some items such as tax free muni bond interest thrown back in

Expert:  Lane replied 9 months ago.

Yes ... offset the additional income .. you CAN fill out a form (I'll get that for you) to have more withheld ... OR ... you can pay estimated taxes quarterly OR you can have more withheld at work ... OR ...you can settle up at tax time (although waiting to pay might caus a small underpayment penalty for not paying along the way)

Expert:  Lane replied 9 months ago.

Here we go:

...

If you are already receiving benefits or if you want to change or stop your withholding, you'll need a form W-4V from the Internal Revenue Service (IRS).

...

You can download the form, or call the IRS toll-free number1-***-***-**** and ask for Form W-4V, Voluntary Withholding Request. (If you are deaf or hard of hearing, call the IRS TTY number, 1-***-***-****.)

...

When you complete the form, you will need to select the percentage of your monthly benefit amount you want withheld. You can have 7%, 10%, 15% or 25% of your monthly benefit withheld for taxes.

Expert:  Lane replied 9 months ago.
Customer: replied 9 months ago.
It just seems unfair we work all our lives and get ready to retire and still pay taxes
Customer: replied 9 months ago.
Thanks and please cancel my subscription.
Expert:  Lane replied 9 months ago.

I understand ... ... the laws are written such that if that's your ONLY income it wont be ... So sorry

Expert:  Lane replied 9 months ago.

I am just a user here as you are (although with credentials verified)

...

I hold a JD (Juris Doctorate, a doctoral degree in the law), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security & Medicare, estate, corporate & tax advice since 1986.

...

If this HAS helped, I'd really appreciate a positive rating (using the rating request, faces, or stars on your screen)

...

That's the only way I'll be credited for the work here.

...

Thank you!

Lane

Expert:  Lane replied 9 months ago.

We are not allowed to deal with pricing and subscription issues

...

YOU can call 1(###) ###-####and they will cancell it (if you have one)

...

But I WOULD respectfully ***** ***** you rate me positively or I'll not be credited with A PORTION of what you've paid JustAnswer for THIS question

Expert:  Lane replied 9 months ago.

And again you can read all about this here:

...

https://www.ssa.gov/planners/taxes.html

...

And here's a great little calculator for seeing exactly how much of your social security will be taxed (might help you to keep the other income under a certain level to make some (or none of it) BE taxed

...

https://www.calcxml.com/calculators/how-much-of-my-social-security-benefit-may-be-taxed

Expert:  Lane replied 9 months ago.

Please let me know if you have any questions at all.

...

If this HAS helped, I'd really appreciate a positive rating (using the rating request, faces, or stars on your screen)

...

That's the only way I'll be credited for the work here.

...

Thank you!

Lane

I hold a JD (Juris Doctorate, a doctoral degree in the law), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security & Medicare, estate, corporate & tax advice since 1986.

Related Social Security Questions