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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10172
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Have just one question Am 68 years old, did not take social

Customer Question

Hello Pearl, have just one question Am 68 years old, did not take social security until age 66. One of the girls in our office is doing my tax'
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: is social securtiy taxable when you don't take social security until age 66 and stlll working
JA: Is there anything else important you think the Accountant should know?
Customer: can't think of any
Submitted: 1 month ago.
Category: Tax
Expert:  Lane replied 1 month ago.

Hi,

...

The amount of your social security that's taxed depends on your TOTAL income

...

So working while taking benefits CAN increase the likelihood that 50% or even up to 85% of the benefit is taxable.

...

What you MAY be thinking about is the fact that once you turn 66 Social Security can no longer REDUCE your benefits

...

Bear with me and I'll get you those income thresholds for taxability

Expert:  Lane replied 1 month ago.

Note that this is based on something they call "combined income." And combined income means 1/2 of your social security plus all other income:

...

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:

  • file a federal tax return as an "individual" and yourcombined 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.

*Note:

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

Expert:  Lane replied 1 month ago.

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

...

And if you DON'T have other questions Your positive rating … (by using those the stars or faces on your screen, and then clicking “submit”) …would be appreciated!

Otherwise I receive no compensation for the work.

...

Thank you,

Lane

...

...

I hold a law degree, with concentration in Tax Law, Estate law & Corporate law, a Masters Degree, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986

Expert:  Lane replied 1 month ago.

Make sense?

....

(1) TAXATION of Social Security (applies at all ages regardless of type of benefit)

...

vs

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(2) Social Security lowering the benefit itself (only applies prior to age 66 and only to retirement benefits)

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