Have a Tax Question? Ask a Tax Expert
Hello and thank you for using Just AnswerAt your rate of income you will be paying tax on your Social Security if you begin receiving payments while you are still working. That would be 85% of the SS payments to you. While you are working, your earnings will reduce your benefit amount only until you reach your full retirement age. After you reach full retirement age they recalculate your benefit amount to leave out the months when they reduced or withheld benefits due to your excess earnings.
I am going on your being born in 1946, you have reached retirement age.
If you are planning on retireing soon, you may want to wait, unless your income will not decrease after you retire. If you are able to itemize then you may be able to bump up a few items on the Schedule A (like making more charitable contributions) to lessen the taxable income.
If you are going to retire in in couple of years and your income will decrease, you may want to wait so your taxable income would be lower.
For looking at waiting in the hopes your income may be lower, here are the amounts that decide % of SS that is taxable.No one pays federal income tax on more than 85 percent of his or her Social Security benefits based on Internal Revenue Service (IRS) rules. If you:
more than $34,000, up to 85 percent of your benefits may be taxable.
more than $44,000, up to 85 percent of your benefits may be taxable.
Thank you in advance for a positive rating.