Regardless of age, social security is taxed if earned income exceeds a certain level. Currently, your financial adviser is correct.
The MAGI level when you turn 66 is still to be determined which is the inherent problem in financial planning.
That seems grossly unfair. SS is already a tax and then it gets taxed again. What can you tell me about modified adjusted gross income?
The MAGI is your earned income plus 1/2 of your social security.
If this goes over the limit, up to 85% of your SSI is subject to your current tax rate.
I agree with the unfairness of the situation, but.....what can I do?
So, as long as your earned income plus 1/2 social security does not exceed the particular years limit, there is no tax on the SSI. I hope this answers your question. If so, please accept and feel free to leave a comment.
Do you have any other questions.
Is there any legal way arounnd this? If I don't have enough deductions to bring my MAGI down to 34000 then unless I am ready to completely retire and live a substandard life I am toast. It seems the Gov is forcing people to work longer than they would like
Your comment about earned income and 1/2 SS does not esceed the paarticular years limit...soes this mean it is a revolving door?Changein rules every year? How are people supposed to survivie if they are not weaothy?
They do change the limits, but it is usually increased in your favor.
As for credits and deductions, they do decrease your tax. There are none specifically tied to SSI.
There are increased deductions once you reach 65 which will help offset the income. That is good news.
What deductions? I am already 65
On the 1040 it is line 39a
What, do I get $.50 for being 65? I am not satisfied with these responses. I do not accept.
I will open the question to other experts, but to make sure I answered your question: "Is this correct?" The answer is yes.
I am opting out of this chat as well. I do not accept your answers and I expect that my credit card will not be charged. You have advertised complete satisfaction. I am not satisfied. Thank you for your time