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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13317
Experience:  15years with H & R Block. Divisional leader, Instructor
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I retired at the end of 2014, my income is from Minnesota

Customer Question

I retired at the end of 2014, my income is from Minnesota State Retirement System and Social Security. Nothing is being withheld for taxes. Should I be paying estimated taxes now, and how do I get started doing that?
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.

Hello,

Your social security may not be taxable but some of it could be. This will depend on how much your retirement income is and your filing status.

Federal law allows you to exclude a portion of your benefit from taxable income until the excluded amount equals the tax already paid on your Minn St Retirement. MSRS computes the exclusion. It is reported on the 1099-R form, which retired members receive each January.

The portion of your monthly benefit that is taxable income for federal income tax is also taxable income for Minnesota. State tax applies to residents of Minnesota and residents of other states who spend more than one-half of the year in Minnesota. There is a possible exception for those who are 65 years old or more, or those who are totally and permanently disabled.

If MSRS receives no federal tax withholding request from you, the IRS directs MSRS to assume you are married and claim three allowances. You can start withholding at anytime. You can call to start that withholding, contact MSRS at(###) ###-####or 1-***-***-****

That may be easier than making estimated payments. If you do wish to make estimated payments you would use 1040ES

http://www.irs.gov/pub/irs-pdf/f1040es.pdf

Expert:  Robin D. replied 1 year ago.

I hope my response was helpful.

Please advise if you need more information or rating in a positive way is acceptable.

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