SS

[ILLMAS]

One of my client asked me a question that I was not able to answer on the spot, he asked if SS benefits are not taxed when a person hits 70 and after? Well I have done some research I have not found anything on this, can someone just confirm this is false.

Thanks

[kcjenkins]

This is false. What is true is that at 70 your SS benefits start whether you are retired or not, and are not reduced no matter how much you earn from working, but it's still taxable up to 85% if you make enough other income.

Also, after workers reach full retirement age, they receive special credit--referred to as a delayed retirement credit (DRC)--for each full month before age 70 in which they are eligible for, but do not receive Social Security benefits. Any DRC that a worker earns also applies to the benefits of the worker's widow or widower. The rate of this DRC varies according to the worker's year of birth.

[bstaxes]

SS benefits are taxable if the income is high. If no income then no taxable SS. Has nothing to do with age, unless the tp wants to work and may have to pay back (I think) $1 for every $2 earned. Its been a while since I looked that up. Hopeful someone on the board knows the number.